Earns RM19,700 from ASB Dividend! Is ASB Still Worth It?

thecekodok

 The moment we’ve all been waiting for is finally here—ASB dividends are in! In this post, we’ll break down exactly how much received, compare it with previous years, and see whether investing in ASB is still worth it—or if ASBF might be the smarter choice. Let’s dive in!



 ASB Investment Snapshot

  • Initial Investment: RM300,000 (max ASB deposit)

  • Current Value: RM362,000 after years of compounding

  • Dividend for 2025: RM19,700 (~5.75%)

    • Distribution: RM17,800

    • Bonus: RM1,800

This works out to roughly RM1,600 per month, almost equivalent to a full-time minimum wage in Malaysia!

ASB is a low-risk, mixed-asset fund: 60% Malaysian equities, 18% global equities, and the rest in income-generating assets.


ASB Dividend Trends Over the Years

Looking back at ASB’s 36-year performance:

  • 1990s: Dividends up to 14%

  • 1998 Asian Financial Crisis: Still over 10%

  • 2008 Global Financial Crisis: Around 9%

  • 2020 (Pandemic Low): 4.25%

  • Now: Stabilizing around 5%

The trend shows that while ASB dividends have declined from their peak, they remain relatively stable.


The Power of Compounding

Here’s the secret sauce: compounding interest. Instead of withdrawing dividends, leaving them to reinvest accelerates growth over time.

  • Scenario: Saving RM500/month

    • 10 years: RM6,000 → grows to ~RM80,000 with dividends

    • 15 years: RM90,000 → grows to ~RM140,000

    • 20 years: RM120,000 → grows to ~RM220,000

Compounding is slow at first but becomes powerful over decades—turning patience into wealth.


Projected ASB Growth

With RM362,000 currently in ASB and a 5.75% dividend rate:

  • 10 years: ~RM634,000

  • 20 years: ~RM1.11 million

  • 30 years: ~RM1.94 million

That’s nearly RM2 million without adding another cent!

Monthly passive income projections:

  • Now: ~RM1,000

  • 10 years: ~RM3,000

  • 20 years: ~RM5,300

  • 30 years: ~RM9,300

Even accounting for inflation, the passive income remains substantial, proving the long-term worth of ASB.


Understanding ASBF

ASBF adds bank financing to boost initial capital and accelerate compounding—but it comes with commitments.

The Three Phases of ASBF:

  1. Early Phase (Years 1–8): Most payments cover insurance and interest. Little growth yet. Surrendering here often leads to losses.

  2. Transition Phase (Years 9–13): ASB value rises, debt reduces. Surrendering is reasonable, but potential is still limited.

  3. Compounding Phase (Year 14+): Dividends compound powerfully. Surrendering now sacrifices massive future gains.

The key: stick to your plan if your cash flow is stable. ASBF accelerates growth, but only if you can commit long-term.


Is ASB or ASBF Worth It?

  • ASB: Great for stability and long-term growth without financial stress.

  • ASBF: Can generate wealth faster but requires strong cash flow and commitment.

Every investor’s situation is different. The choice depends on your income, flexibility, and financial goals. Always assess your risk and plan before making a move.


Final Thoughts

 RM19,700 dividend shows that ASB can still deliver solid returns, especially with compounding. ASBF may boost growth—but only if you can handle the commitment.

💡 Pro Tip: If you’re looking to diversify beyond ASB, consider ETFs. Platforms like moomoo make it easy to invest, track, and grow your wealth with global markets. ETFs can offer long-term growth with flexibility and transparency.


📈 Whether you stick with ASB, explore ASBF, or start ETFs, the key is start early, stay consistent, and let compounding do the heavy lifting.