When it comes to building wealth, one of the most important strategies is to create multiple streams of income. Every one of us only has 24 hours each day, so trying to earn a side income on top of your main job can be stressful and may lead to poor performance and ultimately burn you out.

As such, the goal is to create both active and passive income streams. An active income stream is one where you actively (naturally) participate in, such as your daily job or side job. Meanwhile, passive income streams are generated without any input from your end – or minimal effort at best through passive investments.

One common way of generating passive income is by investing in dividend stocks. Companies with solid financials in stable industries tend to reward shareholders with regular dividend payouts, and depending on the company’s policy, payouts may occur after every quarter, half-yearly, or annually. Sometimes, they may even issue special dividends too. Most common among these are banks and REITs. 

Good dividend stocks are usually well-established companies with an extensive track record of distributing its profits to shareholders, making them both attractive to shareholders and (somewhat) resistant to market volatility – which combined, also makes dividend stocks a less risky investment option.

But with hundreds of stocks listed in Bursa Malaysia, how do you pick out solid dividend stocks worth investing in? It’s important to find stocks that not only provide a consistent yield but also demonstrate its capability to sustain payouts over time. With so many dividend stocks in the market, investors especially those who are just starting out may find it hard to pinpoint where to begin. One useful tool is Bursa Marketplace’s Stock Screener which you can use to sift through the hundreds of listed companies on Bursa Malaysia and find dividend stocks that may be worth a closer look. Read on to find out how.

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One thing to note is that institutional investors tend to have positions in high dividend yield stocks because of their lower risk and volatility while still earning regular dividends and potential capital appreciation. Also, many companies pay dividends but the key is finding companies that can consistently provide a relatively high yield and sustain them over time. In Bursa Malaysia, there are a few of these gems.

That said, while dividend stocks are considered as a relatively safe investment, all investments come with risks. Hence, it’s crucial for investors to conduct their own research before committing to an investment. Bursa Marketplace’s Stock Screener is a great first stop to help you simplify your research process. 

Click here to try out the Stock Screener. Learn more about Bursa Marketplace here.  

• TAGS:
• Bursa Malaysia
• Bursa Marketplace
• Dividend Stocks
• Investing
• Stock Screener
• Stocks