STOCK returns have two parts – dividends and capital gains. Most investors are familiar with capital gains i.e. the rise in stock prices.
In emerging markets like Asia, dividends typically form a less significant part of total returns. This is because when economic growth rates are relatively high, greater returns can often be generated by reinvesting profits back into the company rather than by distributing them out to shareholders.
Already a subscriber? Log in.
Limited time offer:
Just RM5 per month.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!