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Cover Story 2: Stocks with dividend yields of over 4% an attractive investment option

WITH the overnight policy rate (OPR) at a record low of 1.75% and with most economists pricing in another 25 basis point cut to 1.5% in the first quarter, savers with a higher tolerance for risk may opt for other alternatives for returns on their savings. One option would be to invest in stocks that offer dividend yields of at least 4% or more, which is much higher than the prevailing fixed deposit rate of 1.75% to 2% offered by most banks. “Dividend-yielding stocks are evergreen stocks as long as they keep paying. If you are buying [a stock] for dividend yields, then you should not expect too much from capital appreciation.

Temporary closure has little impact on Poh Huat

While the temporary shutdown will result in a potential loss of revenue due to production shortfall, TA Securities estimated that it would add up to around RM1mil for 10 days of disruption. “Together with the cost of disinfection and screening of workers, we believe the overall earning impact is less than 2% of FY21 earnings. ’s operations in Malaysia is expected to have little impact on the company’s earnings. While the temporary shutdown will result in a potential loss of revenue due to production shortfall, TA Securities estimated that it would add up to around RM1mil for 10 days of disruption.

543 Covid-19 cases found among workers at Poh Huat furniture subsidiary

Poh Huat Resources Holdings Bhd's main operating subsidiary in Malaysia has discovered 543 positive Covid-19 cases among its employees. According to a bourse filing, the furniture company’s subsidiary Poh Huat Furniture Industries (M) Sdn Bhd (PHFI) went through a voluntary Covid-19 screening of all of its employees (foreign and local) at all its factories located in the Bukit Pasir Industrial Area in Muar, Johor.

Robust demand seen for Poh Huat furniture

Strong demand boosts Poh Huat earnings

posted a 49% jump in net profit to RM22.08mil for the fourth quarter ended Oct 31,2020, from RM14.83mil a year earlier. This was driven by pent-up demand, especially from the US home and home-office furniture, due to the shift to working from home brought about by the Covid-19 pandemic. In a filing with Bursa Malaysia, the furniture maker said its revenue for the quarter in review rose 13% to RM216.72mil from RM192.08mil previously. “Production and shipment of furniture for both our operations in Malaysia and Vietnam continued to ramp up following the gradual resumption of production after the halt in March and April 2020, following the first wave of Covid-19 pandemic, ” it said.

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