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Income Investors – An Introduction To A Billion Dollar Malaysian Company With A High Dividend Yield

Income investors are constantly trying to look for good companies that are trading at relatively high dividend yields.

In Singapore, such investors might be attracted to companies such as Singapore Telecommunications Limited (SGX: Z74) or Singapore Technologies Engineering Ltd (SGX: S63), since both are considered stable companies with above-average dividend yields.

Yet, why should investors limit themselves to companies in Singapore?

For those who are willing to expand their horizon, there are quite a number of good companies in Malaysia that might meet their expectation of good income stocks too.

In this article, we will introduce one of these companies, which has stable business and above-average dividend yield.

YTL Corporation

The company that we will talk about is YTL Corporation Bhd (KLSE: YTL), a conglomerate with a business empire spanning a few industries.

It’s involved in Utilities, Cement Manufacturing, Construction Contracting, Operation & Maintenance, Property, Hotel and IT. In other words, YTL is a conglomerate similar to SembCorp Industries Limited (SGX: U96).

Unlike Sembcorp Industries that is significantly owned by institutional investors, mainly Temasek, YTL is owned by the Yeoh family (49.30% through direct and indirect holding). Moreover, the family is actively involved in the management of the business. In other words, we need to be comfortable to the owner structure before investing in the company.

YTL’s diverse business empire also means that it has significant stakes in many listed entities such as YTL POWER INTERNATIONAL BHD (KLSE: YTLPOWR), YTL e-Solutions Berhad (KLSE: YTL), YTL Hospitality REIT (KLSE: 5109), Starhill Global Real Estate Invmt Trust (SGX: P40U) and others.

For most investors, such complex structure naturally deters them from deep research to understand the company. Yet, for those who are willing to do some work, YTL might be an attractive company to explore due to its high yield of 6.5%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.