Tanjong Plc ~ how high can you reach?

Tanjong Plc ~ how high can you reach?

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Tanjong Plc is one of the 30 FBM KLCI stocks. It is independent power producer and Malaysian number forecasting operator (lottery). It is a good defensive stock because of its attractive 6.28% dividend yield (based on RM14.30 market price). With current fixed deposit rate of 2.5% per annual, Tanjong Plc is good to invest due to its good track of historical dividend payout.

Tanjong_2009-07-27
Tanjong Plc performance since June 2009

I started to study the research done by OSK Research, Standard & Poor’s (S&P) Equity Research by Public Bank and Maybank Investment Bank. The 12-month target prices given by these research firms are about the same RM18.60, RM17.00 and RM17.60. I checked back the previous recommended target price. OSK Research gave a very aggressive price that cannot be reached. S&P is still okay to follow but failed to reach too. Why? It is all because of other factors like economy, politics. Therefore, we should only use it as guidance. Study and make your own decision.

What price should we sell? Nope. I don’t sell attractive dividend yield stock. We should keep it unless the company is not performing anymore. The question we should ask… What price should I buy? Buy at the discounted price during economy downturn. Normally, people stay away from stock market. But that’s the best time to buy these high dividend yield stocks actually.

  • http://www.ah-hong.com 阿鸿

    You are right, keep those stock that pay good dividend. Wahh…this Tanjong very famous stock one wor, you so rich. Hehe :p

  • http://spBlogger.com spBlogger

    @阿鸿: Can only see the price go up but cannot sell. That’s the main problem that you want to keep dividend stock. The dividend only 7% per year. But the capital price already go up 10% already. If you kill (sell) it now, you will lose a chicken that lay golden eggs. :P

  • http://limpek.com/ LimPek

    u play this ? last time what price is the lowest?

  • http://spBlogger.com spBlogger

    @LimPek: I own some of it. The lowest should be around RM10 this year. Too bad that I did not study much during that time. Missed that opportunity.

  • http://www.limfy.com Alvin Lim

    Wow. This is new. I have interest in stock but don’t have knowledge. So mean you have earn total of 17% of this stock and it is going to increase again :)

  • http://spBlogger.com spBlogger

    @Alvin Lim: No 17% yet. I did not get the full 7% dividend yet. :P