ASB Dividend is 7.30 Sen Per Unit for Year 2009

Courtesy of Fortune Sense:

Amanah Saham Nasional Bhd (ASNB) announced that for the financial year ending Dec 31, 2009, Amanah Saham Bumiputera (ASB) unit holders will receive - Income distribution of 7.30 sen per unit and - Bonus of 1.25 sen per unit - Total is 8.55 sen per unit



Last year income distribution was- Income distribution of 7.00 sen per unit and - Bonus of 1.75 sen per unit - Total is 8.75 sen per unit



The total dividend yield for this year is 0.20 sen lower than last year and there is 6.78 million unit holders who currently hold more than 70 billion ASB units.



Even tough the yield is lower than last year but the total payment for this year is RM5.48 billion compared to total payment of RM4.79 billion last year



According to PNB group chief executive and president Tan Sri Hamad Kama Piah Che Othman ASB is capable of paying more than 11 sen per unit but decided to paying 7.30 sen per unit and bringing forward the balance of 3.70 sen for 2010. The quoted reason is to ensure that the money could be use to buy more shares and do more investment.



Financial Result of ASB- Gross income for year 2009 - RM5.46 billion up to 10 December 2009 (year 2008 - RM5.28 billion)- Dividend income - RM1.48 billion, or 27 per cent- Profit from the sale of shares - RM3.67 billion, or 67 per cent- Investments in short-term instruments and other investments - RM309 million or 6.0 per cent



From the data, it shows that more than 60% of the income was generated by share trading. The income distribution and bonus will be automatically credited into the unit holders' accounts. All transactions for ASB will be suspended from Dec 21 until January 3 to enable the calculation of income distribution and bonus. Unit holders will be able to update their accounts from January 4.



ASB is a fixed price equity income fund, opened for Bumiputera aged 12 years and above. Normally the ASW 2020 and ASM dividend is slightly lower than the ASB dividend. Since the ASB dividend is at the range of 7 percent excluding the bonus units.



Do wait and see whether next April and next September the ASM and ASW 2020 dividend is still maintain at 6 percent plus range (ASM and ASW 2020 Dividend Rate). Besides, on next October the AS 1Malaysia will declare the first maiden dividend.



The 6 to 8 percent per annual return rate from the ASNB fixed price unit trust product could be used as a return rate benchmark to beat if we want to invest on other investment tools.



The return yield from the other investment tools should higher than the 6 to 8 percent per year to justify the time and the risks we put on it instead of invest in the ASNB fixed price products. What do you think of this?