My Stock - PIE (7095)

How PIE fulfils my stock selection criteria?
1) Annual Dividend Yield 8% based on my average price of RM3.76
2) Business has been growing up for past 3 years (from 2009 to 2011)
3) ROE > 10%
4) PIE is a debt free counter where it has cash on hand more than RM100mil and borrowing about RM20mil in 2011.

I accumulated PIE (7095) from Jun of 2011 until Oct 2011 with average cost RM3.76 and i kept it till today.

 

PIE is a very good fundamental company, it has a lot other advantages as below:
1) Dividend Policy around 67% (two thirds of net profit)
2) PIE has been giving high dividend at least RM0.30 starting from 2008
3) PIE has been in net cash position for at least past 10 years

Back to 2011, the reason i bought PIE is because of its business has been growing up well especially 2011. With its net cash position with more than RM100mil, it will be giving a good dividend for next few years if its business can be maintained. PIE is a slow but steady stock and it is suitable for those who want a stable investment and focus on dividend.

My Investment Result
I gained about 45% from initial capital, this is not included the dividend that i received over past few years. I have received RM0.71 dividend for financial year 2011 & 2012. However, it is unlike My Stock - Wellcal which is giving me more and more dividend. Its dividend payout is pretty flat which is about 30 cents. So, with my entry price, i will be getting around 8% dividend yield every year which is still pretty good if compare to fix deposit.

About Future
I don't expect PIE to have a major improvement in term of its revenue & profit. So, i would expect around 32-35 cents dividend for FY 2013. So, i am happy to keep it as long as it is able to maintain its business and giving at least 30 cents dividend.