The following excerpts were from fund manager, Aberdeen Asset Management who manages about US$23billion of Asian assets which complements my article on dividend payout versus stock prices:

Reported in The Star (25/7/06):
“Malaysia’s stock market has risen this quarter as share prices across Asia have fallen, and the relatively high dividends paid by local companies may lead to further gains . Investors are now seeking dividend yields because they can’t be sure about capital appreciation,” said Gerald Ambrose, who manages about US$23bil of Asian assets at Aberdeen Asset Management in Kuala Lumpur.

Other points highlighted:

• Malaysia’s dividend is among the highest and most reliable in Asia;
• Shares in Malayan Banking Bhd yield more than any other lender in the region, according to data compiled by Bloomberg;
• Payouts to shareholders in Malaysia have climbed faster than stock prices in the past four years;
• The dividend yield on the KLCI was 2.74% in December 2002, when a rally began that took stocks 50% higher;
• Among Asian benchmarks, Malaysia’s index was the least erratic during the past 60 days, according to Bloomberg data; 
• History suggests Malaysian stocks will be among Asia’s better performers this year;
• Since the MSCI Asia-Pacific was introduced at the start of 1988, the Malaysian index outperformed in six of the seven years that the regional benchmark declined.

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