It pays to be a long-term investor of YTL Corp




The Edge Malaysia, November 11, 2013

By Ben Shane Lim

YTL Corp Bhd may be perceived as a boring stock but long-term investors of the conglomerate had been handsomely rewarded over the past 10 years.

With a total return of 285% over 10 years, from Jan 2, 2003 to Jan 2, 2013, the conservative conglomerate proves that one can quietly go about its business and still produce good returns for the shareholders, without indulging in fancy corporate exercises or earth-shattering mergers and acquisitions.

YTL Corp is about consistency and predictability. There certainly are conglomerates that fare better in terms of total shareholders’ returns but most are subject to the cyclical nature of their businesses. In YTL Corp's case however' it's all about acquiring the right assets with steady cash flow against carefully measured risks. (See table)

• A person who purchased 15, 000 YTL Corp shares 10 years on on Jan 2, 2003, priced at RM3.16 each, or total cost of RM47,400 will end up with 87,040 YTL Corp shares 10 years on, on Jan 2, 2013, priced at RM1.84 each, or a total value of RM160,154, and RM17,645 in total cash dividends, but that’s not all...

• YTL Corp also offered to shareholders YTL Power shares and warrants at discounted prices under the restricted offer for sale (ROS) exercise in 2006, 2007 and 2012. Under the ROS, YTL Corp shareholders would have subscribed for a total of 2,667 YTL Power shares at RM1 each or a cost of RM2,667, and 5,803 YTL Power warrants at 20 sen or a cost of RM1,161.

• The paper gain would be RM1,600 on the YTL Power shares as at Jan 2, 2013, and RM1,363 on the YTL Power warrants. The YTL Power shares also produced cash dividends of RM1,594 and share dividends of 132.3 units worth RM212.

• In total, the YTL Corp investor gained RM135,168 or 285% over the 10 years.

YTL Corp's Dividend Track Record Over The Last 10 Years 

 

YEAR YTL CORP SHARES DIVIDENDS, ETC PAYMENT DATE
2003 15,000 15% or 7.5 sen first final dividend = RM1,125 Jan 9, 2004
2004 +1,000 shares 1:15 share dividend = 1,000 shares Jan 10, 2005
2005 16,000 15% or 7.5 sen first final dividend = RM1,200 Feb 4, 2005
2005 16,000 15% or 7.5 sen first final dividend = RM1,200 Jan 6, 2006
2006 16,000 15% or 7.5 sen interim first dividend = RM1,200 Dec 4, 2006
2006 16,000 15% or 7.5 sen first final dividend = RM1,200 Jan 5, 2007
2006 16,000 ROS of 1 YTL Power: 10 YTL Corp shares at RM1 each = 1,600 YTL Power shares at a cost of RM1,600 Dec 11, 2006
2007 16,000 15% or 7.5 sen second interim dividend = RM1,200 April 18, 2007
2007 16,000 15% or 7.5 sen interim dividend = RM1,200 June 25, 2007
2007 16,000 5% or 2.5 sen final dividend = RM400 Dec 31, 2007
2007 16,000 ROS of 1 YTL Power: 15 YTL Corp shares at RM1 each = 1,067 YTL Power shares at a cost of RM1,067 Dec 14, 2007
2008 16,000 15% or 7.5 sen second interim dividend = RM1,200 March 24, 2008
2008 16,000 15% or 7.5 sen second interim dividend = RM1,200 June 24, 2008
2008 16,000 5% or 2.5 sen final dividend = RM400 Dec 26, 2008
2009 + 320 shares Share dividend 1:50 = 320 shares Sept 9, 2009
2009 16,320 15% or 7.5 sen first and final dividend = RM1,224 Dec 24, 2009
2010 16,320 20% or 10 sen first and final dividend = RM1,632 Dec 23, 2010
2011 16,320 x 5 Subdivision of each 50 sen share to five shares of 10 sen par April 28, 2011
2011 81,600 20% or 2 sen interim dividend = RM1,632 Nov 24, 2011
2012 81,600 20% or 2 sen interim dividend = RM1,632 June 27, 2012
2012 + 5,440 Share dividend 1:15 = 5,440 shares June 28, 2012
2012 87,040 ROS of 1 YTL Power warrant: 15 YTL Corp shares at 20sen each = 5,803 YTL Power warrants at a cost of RM1,161 Oct 2, 2012

Note: ROS = Restricted offer for sale; dividends returns before tax

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