DiGi posts good Q3 result promises higher dividend yield and bring on the red army Maxis

Written on November 3, 2009 – 3:01 am | by Kampung Boy |

DiGi is responding well to Maxis IPO that will relist Maxis again into Bursa Malaysia. DiGi posted a very strong Q3 result with an EPS of 31.40 sen for year 2009.

This brings to accumulated EPS for the first three quarters to 97 sen. Although slightly lower compared to last year which is 112.30 sen, but it is still a strong performance due to the recession that the globe is facing.

Not only that, DiGi has up the ante again by announcing that DiGi will increase their payout of 80% of their net earnings as dividends. This makes DiGi on par with Maxis which has a 75% of dividend payout of net profits.

It is a massive increase for DiGi as their policy was only 50% of dividend payout on their net profits.

This is not inclusive of special dividends and capital repayments. If both of these dividends are included then DiGi has typically surpassed paying out more then 100% of net earnings to their investors.

This makes DiGi as a high dividend yield stock. Up to date, DiGi has made a RM 1.24 payout per share giving it a yield of roughly 5.6% ROI (Return of Investment) at DiGi’s current price of RM 21.80

Isnt that better then our FD and even EPF? The only drawback for DiGi is that to purchase 1000 share, investors need to fork out more then RM 20k. That’s the only the downside of investing in DiGi.

So if you are looking for high dividend yield stock, DiGi is surely one of them and will not let you down even on times of turmoils. The orange army is marching strong and the red army (Maxis) and blur army (Celcom) better watch your back!

If you like my kampung style investment blog, please subscribe to our full feed RSS. You can also subscribe by Email to receive all latest investment updates. Don’t miss out!