Look for counters with high dividend

When market fall, rule of thumb is not to buy.

There are hidden jewels in the falling market. I have noticed a few counters that offer high dividend yield. What does that mean. Assuming a counter share are trading for RM 4.00. The dividend for this share at par of RM 1 is RM 0.40. That mean the dividend yield is 10%.

So when the counter fall to RM 3.60, how much is the dividend yield? That is RM 0.40 divide by RM 3.60 equal to 11.11%

One of my favourite counter is Berjaya Sports Toto. This counter has been paying dividends of around 10% per annum. Beside that, it also enjoy capital appreciation.

This is not recommendation to buy but an idea how to beat Fixed Deposit low return. Although FD is risk free, I do not encourage FD as investment but as 6 months emergency cash use. So asset allocation for FD assuming your expenses is RM 5,000, you can allocate RM 30,000 into FD. Then all your remaining cash can be use to invest.

To reduce risk and maximize return, go for high dividends counter with growth potentials.

Any recomendation?