Amanah Saham Malaysia (ASM) Dividend 2020

Amanah Saham Malaysia (ASM) has paid its dividend on 1 April 2020. The dividend declared is 4.25 cents, equal to a rate of 4.25%. It is a large decrease from last year.

Trend

For the previous dividends, you can refer to this article.

The dividend has decreased by 22.73% compared to last year. This dividend represents the lowest amount in the history of this fixed-priced fund and is also the second time its dividend is below 6.00 cents. ASM is breaking its lowest dividend record consecutively now.

Outlook

I have set 4% dividend rate as a cut-off for stopping investment in the fixed-priced funds. So, since the dividend of ASM keeps on reducing, should I withdraw my money and invest in some alternatives now?

I would not take the drastic measure of withdrawing all my money from this fund. The current dividend rate of ASM is still slightly higher than the 4% cut-off that I have set. Given current market condition, I foresee that the dividend rate would not improve in the following year.

But I might not add more money into the fund now (it is not like I am able to as it has been quite long since I managed to deposit money into the fund). Even if I choose to top up, it will only be in small amounts. From now on, I will treat this fund as a money market fund which acts as my emergency fund. This is due to the fact that it is comparatively easy and fast to withdraw from Amanah Saham Nasional Berhad than mutual fund companies. Furthermore, the yield is still higher than bank rate and money market funds. In conclusion, I am keeping my money in the fund.