Are you serious to make a high grossing investment portfolio? Read further to know how dividend-paying blue-chip stocks in Malaysia can grow your portfolio.
Dividend-paying blue-chip stocks have a good reputation among Bursa Malaysia investors or in any other stock market. If you are a dedicated investor and you are a devoted follower of money; you can not turn your eyes from blue-chip stocks which are especially famous for the high return and high dividend.
Investing in blue-chip stocks might seem old fashioned but it will never go out of fashion. These are the company which provides their investors support even when the time is tough for the market. Many Wealthy investors prefer to dedicate a big percentage of their investment portfolio to dividend-paying blue-chip stocks.
Blue chips stocks are available in many sectors. According to information of listed company in Bursa Malaysia, blue-chip stocks are available in energy (oil and gas) sector (e.g. Petronas Gas), Banking (e.g. AMMB Holdings, Public Bank), Telecommunication (e.g. Telekom), etc.
You might get the idea what are blue-chip stocks.
But, There is more to know.
“Blue Chip” word came from a poker game, these are the chips with high value. Blue chips stocks are the companies which qualify with qualitative and quantitative.
Blue chip stocks are the companies which make a high-quality product and provide quality service and are recognized in national and international level. These are the companies have the tag of too-good-to-fail.
Below are the few characteristics of dividend-paying blue chip stocks of Bursa Malaysia Investment.
1. They have the regular solid balance sheet and financial statement. The product/service diversification offered by them is known globally.
2. They provide a high return on capital, also known as return of equity to their common shareholder. This is the one factor to trust blue chip stocks
3. They are considerably larger than other companies listed in Bursa Malaysia. Their reachability in domestic as well global market makes them the largest enterprise.
4. Over the decades they have established the record of stable income.
5. They frequently repurchase the stocks whenever the stock price is becoming and profitable to make earning.
6. They are famous for uninterrupted dividend payment delivery to their investors. That’s what makes investors hold on to share of blue-chip stocks.
7. The share prices of blue-chip stocks are expensive than other regular stocks due to their reputation and stability.
But, What are the benefits of investing in dividend paying blue chip stocks in Malaysia Stock Exchange?
By now you I know you might be almost convinced why you should invest in Blue Chip Stocks.
But you should always do absolute research and gain a thorough knowledge before investing in any types of stocks.
Assured Dividend Payment
Why do we invest in stocks?
To make some money. Don’t we?
The dividend is what helps us to make most of the money while in investing in Bursa Malaysia stocks.
If you are investing in Blue chip stock, one thing you can make sure that you will always be paid by the high dividend on regular basis. As blue-chip stocks have crossed the growth state, they remain in stable financial condition, therefore they are able to pay a regular dividend. Assurity of the dividend is the utmost importance when you invest in stocks. While investing in High Dividend Blue-Chip stock, dividend gives you moral support and motivation for future investment.
As we have discussed earlier blue-chip stocks have a stable income. Therefore, major investors also have stable earning too, who have invested in blue-chip stocks. As these companies are too good to fail, they provide a safe place especially during the time of financial crisis. When the market goes bearish, you don’t have to worry about the losses or return on your investment. You will get your dividend payment no matter what.
Every potential investor emphasize on diversification.
Diversification in investment is, investing more than one type of investments. Even in stock investment, you should invest in various types of stocks. There are small, mid and large caps stocks. And, of course, blue chip stocks.
Blue-chip stocks are always considered as good for diversification of investment portfolio. As they don’t get much affected by a weak market condition, hence if you lose some money in some stocks, you will always have an income generating portfolio while investing dividend-paying blue-chip stock of KLSE Investment.
Advantage Of Competition
Blue chip stocks get competitive advantages because of their goodwill, cost efficiency and their reputation in the market. Investors of the blue-chip also get the advantage of this.
If a company has to attract consumer and maintain stable consumption of its product/service it will perform better on daily basis. More consumption means more consumers mean more revenue generation. And more revenue means a high return to the investors/stockholders.
You might be wondering, you will need a large amount of ringgit to invest in blue chip stock in Bursa Malaysia.
If you don’t have much capital to invest in so many dividend-paying blue chip stocks, do not worry. You can invest in the basket of blue-chip stocks. You can invest via ETFs or unit trust fund. ETFs are exchange-traded funds, that trade index, commodity, a basket of stocks and other assets.
All wealthy investors choose to diversify their investment portfolio with blue-chip stocks. They are a stable and steady source of income. There are many high dividends paying blue chip stocks available in Bursa Malaysia which you can choose to invest in. During the time of financial crisis, blue-chip stocks pay their role as a safe haven.
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