In the investing world, one age-old strategy continues to be popular thanks to its ability to generate consistent returns – dividend investing. Whether you’re new to investing or looking for ways to grow your wealth steadily, dividend investing could be a useful strategy for your portfolio.

But what exactly are dividends? Dividends are a portion of a company’s profits distributed to shareholders as a reward for their investment. These payouts, often issued on a regular basis, are also seen as a reflection of the company’s profitability and financial health.

Why Consider Dividend Investing?

Dividend-paying stocks offer several advantages that make them an attractive option for investors. Companies that consistently pay dividends can provide a reliable source of passive income, which can either be used to offset everyday expenses or reinvested to earn more dividends over time. Additionally, dividend-paying stocks are often less volatile, providing some cushion against market fluctuations. 

That being said, while building your own portfolio of dividend stocks might seem appealing, it comes with challenges. Companies can change their dividend policies, underperform, or reduce payouts, making it difficult to manage a diversified and profitable portfolio on your own. Another risk is investing in what’s known as “dividend traps”, where companies gradually reduce their dividend payouts over time.

This is where dividend-focused unit trust funds come into play. These funds manage a curated basket of dividend-yielding investments, offering convenience and reducing the risks associated with individual stock selection.

What About Shariah-Compliant Investing?

In recent years, the growing emphasis on responsible investing has led to a surge in demand for investment options that can cater to investors’ ethical and sustainable values and not solely being focused on maximising returns on investment (ROI). Shariah-compliant investing incorporates the Islamic principle of “Maqasid al-Shariah” (the higher objectives of Shariah), which seeks to protect and promote welfare, justice, and the environment. This focus on socially responsible investing makes it appealing to a broader audience, including non-Muslims who value ethical investment practices.

Introducing Hong Leong Dana Dividen

If you’re seeking a Shariah-compliant dividend-focused investment, Hong Leong Dana Dividen offers a compelling option. Here’s what makes this fund stand out:

1. Diversified Investment Portfolio: The fund invests in Shariah-compliant equities and/or Shariah-compliant equity related securities, sukuk, and Islamic liquid assets.
2. Foreign Market Opportunities: Up to 30% of the fund’s net asset value (NAV) may be invested in foreign markets, allowing for greater diversification.
3. Regular Income Distribution: The fund aims to provide semi-annual income* distribution to its investors.
4. Focused Investment Approach: The fund manager employs a combination of “top-down” sector allocation analysis and “bottom-up” stock selection, ensuring a well-balanced portfolio.

*Income distribution (if any) are not guaranteed.  

Investing in Hong Leong Dana Dividen is hassle-free with HL iSmart Invest, Hong Leong’s online investing platform. You can also reach out to your servicing Unit Trust Consultant for personalised assistance.

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Ready to build a passive income stream through ethical and effective investing? Learn more about Hong Leong Dana Dividen and how it can help you achieve your financial goals. 

This article is brought to you by Hong Leong Asset Management Bhd. 

Disclaimer:

This advertorial has not been reviewed by the Securities Commission Malaysia. 

Before investing, investors are advised to read and understand the contents of the following:

• Hong Leong Dana Dividen Prospectus dated 11 November 2024 and the Product Highlight Sheet (“PHS”).

The Hong Leong Dana Dividen Prospectus has been registered and PHS lodged with the Securities Commission Malaysia who takes no responsibility for the contents. A copy of the Prospectus and PHS can be obtained from any of HLAM’s offices, agents, authorised distributors or website and investors have the right to request for it. The PHS and the HLAM Prospectus should be read and understood before making any investment decision. Investors should also consider the fees and charges involved before investing. Prices of units and distributions payable, if any, may go down, as well as up and past performance of the fund is not an indication of its future performance. 

Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, the value of your investment in Malaysia Ringgit or such other currency will remain unchanged after the distribution of the additional units. Where unit trust loan financing is available, investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units/ funds. Investors shall be aware of the risks associated with each fund before investing. It is not intended to be an offer or invitation to subscribe or purchase of units/ funds. Applications must be made on the Account Opening Form, Investment Application Form and Suitability Assessment Form referred to and accompanying the HLAM Prospectus. The funds may not be suitable for all and if in doubt, investors shall seek independent professional advice.

This document shall not be copied, or relied upon by any person for whatever purpose. The information herein is given on a general basis without obligation and is strictly for information only. This document is not an offer, solicitation, recommendation or advice to buy or sell any investment products, including any collective investment schemes or shares of companies mentioned within. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this document, Hong Leong Asset Management Bhd and its employees cannot be held liable for any errors, inaccuracies and/or omissions, howsoever caused, or for any decision or action taken based on views expressed or information in this document. The information contained in this document, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts and analysis of information available as at the date of this document and reflects prevailing conditions and our views as of the date of the document, all of which are accordingly subject to change at any time without notice. Hong Leong Asset Management Bhd does not warrant the accuracy, adequacy, timeliness or completeness of the information herein for any particular purpose, and expressly disclaims liability for any errors, inaccuracies or omissions. Any opinions, projections and other forward-looking statements regarding future events or performance of, including but not limited to, countries, markets or companies are not necessarily indicative of, and may differ from actual events or results. Nothing in this document constitutes accounting, legal, regulatory, tax or other advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. The investor may wish to seek advice from a professional or an independent financial adviser about the issues discussed herein or before investing in any investment products. Should the investor choose not to seek such advice, the investor should consider whether the investment in question is suitable for the investor. Hong Leong Asset Management Bhd, its associates, directors, connected parties and/or employees may from time to time have interest and/or underwriting commitments in the investments mentioned in this document.