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With MALAYSIA OPR rate shrinking down, FIXED DEPOSIT RATE had been dropping and interest income are affected greatly. 2 years back, the FD PROMOTION RATE can be as high as 4.5% PER ANNUM. At the current market scenario in 2020, the FD PROMOTION RATE can only go as high as 2% PER ANNUM, and the OPR RATE will be expected to stay low for sometime until economy recover and pick up again.
How long the market will takes to recover? How long will it pick up again? Will it stay low for a few years? 2 years? 3 years? 5 years?
If that is your concern, maybe is time to take some time and look for some dividend income that had better yield, steady and also had good management.
The one company I am looking into is DOMINAN 7169 (DOMINANT ENTERPRISE BERHAD).
This company main business is to supply raw material to furniture company for their manufacturing. Furniture plywood and skirtings. Dominan also supplies so construction material as their expansion business.
Dominant will also be looking to create a stream of steady rental income this year after their warehouse factory is ready and already have ready tenant to rent their commercial property.
Most importantly, investor have to know that this company is not a goreng goreng stock, the company owner always prioritize shareholder value, and dividend payment every quarterly.
DOMINAN had been paying dividend without fail since 2005.
Why the current price is very attractive for you to invest into DOMINAN.
1. The company had good and strong record of paying dividend. Here are the past 4 years total dividend that the company had paid out to shareholder.
YEAR 2017 - TOTAL DIVIDEND PAID IS 5 CENTS
YEAR 2019 TOTAL DIVIDEND IS 7 CENTS
YEAR 2020 TOTAL DIVIDEND IS 4 CENTS
WHY FYE 2020 TOTAL DIVIDEND PAID IS LESSER ?
REASON IS SIMPLE, NOW THE WHOLE WORLD GOT COVID-19 SITUATION, AND DOMINAN SUFFER FROM A 3 MONTH LOCKDOWN ON OPERATION. THE IMPACTED THE REVENUE, HENCE THE LOWER DIVIDEND PAY OUT
HOWEVER, THE CURRENT FURNITURE LANDSCAPE AT MUAR, JOHOR IS OPERATING AT MAX CAPACITY. ORDER ARE PILLING UP AND FURNITURE MAKER ARE ALL BUSY FULFILLING ORDERS.
COMPANY LIKE POHUAT WHICH HAVE OPERATION IN MUAR AND VIETNAM ARE BOOMING WITH ORDERS.
DOMINAN ALSO HAVE OPERATION AT MUAR JOHOR AND VIETNAM.
BOTH ARE FURNITURE HUB IN SOUTHEAST ASIA!!!
SO WILL DOMINAN BUSINESS CONTINUE TO BE LOW ? OR THE BUSINESS WILL REBOUND?
IF BUSINESS REBOUND, WILL THE DIVIDEND GO BACK UP?
IF BUSINESS REBOUND, WILL THE DIVIDEND GO BACK UP?
LETS SAY U ARE INVESTING AT 70 CENTS NOW, GIVE ANOTHER 1 YEAR, DOMINAN BUSINESS REGAIN TRACK AND CONTINUE PAY BACK 7 CENTS DIVIDEND A YEAR, MEANS YOU ARE GETTING 10% ROI ON DOMINAN DIVIDEND
RULES OF 72, BASED ON 10% ROI OF DIVIDEND, YOU WILL RECOUP ALL YOUR INVESTMENT FROM DOMINAN IN 7 YEARS!!!!
NOW THIS IS UR CHOICE TO SEE IF DOMINAN AT THE CURRENT PRICE WORTH FOR YOU TO TAKE THE RISK
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