{"id":39748,"date":"2019-09-03T14:05:29","date_gmt":"2019-09-03T06:05:29","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=39748"},"modified":"2019-10-02T10:03:14","modified_gmt":"2019-10-02T02:03:14","slug":"dividend-investing-malaysia","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/dividend-investing-malaysia","title":{"rendered":"5 Stocks In Malaysia That Pay Large Dividends"},"content":{"rendered":"

Your phone pings. You pull down the notification bar, and an email announces that a big, fat cheque has just been deposited into your account \u2013 all without you having to work for it.<\/p>\n

This sounds like the stuff of daydreams \u2013 or the setup of an online scam \u2013 but for many investors, getting regular payments like these is part of everyday life.<\/p>\n

Interested in how some people gain recurring income from their investments? Here\u2019s what you need to know about investing in dividend stocks.<\/p>\n

<\/span>What are dividend stocks?<\/strong><\/span><\/h2>\n

Companies that earn a profit sometimes choose to distribute part of it to shareholders. This payment is called a dividend<\/strong>.<\/p>\n

Typically, companies that pay out dividends do so on a predictable schedule (quarterly, yearly, etc.), although this doesn\u2019t mean that it\u2019s compulsory for them to pay dividends. Many companies don\u2019t pay out dividends at all, preferring to reinvest their profits to grow the business instead.<\/p>\n

<\/span>How long do you have to hold a stock before you get dividends?<\/strong><\/span><\/h2>\n

When it comes to receiving dividends, here are four important dates:<\/p>\n

    \n
  • Announcement date<\/strong>: This is the date on which a company\u2019s board of directors announces the details of a dividend payment.<\/li>\n
  • Ex-dividend date<\/strong>: To be eligible for a dividend payout, you need to purchase your shares before (not on<\/em>, or after<\/em>) the ex-dividend date.<\/li>\n
  • Entitlement date<\/strong>: This is the date on which a company checks its records to see who should receive the dividend.<\/li>\n
  • Payment date<\/strong>: This is the date that you\u2019ll receive your dividend.<\/li>\n<\/ul>\n

    If you purchase your shares before the ex-dividend date<\/strong>, you will be entitled to a dividend payout. As long as you hold the shares until the ex-dividend date has passed, you will receive the dividend even if you sell the shares before the payment date.<\/p>\n