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Looking for steady income in Malaysia’s exciting market?
High-yield stocks in Malaysia might grab attention, but income seekers crave stability.
That’s where high-dividend stocks come in! In Malaysia, dividend yields have typically hovered around 4%, offering a reliable way to earn regular cash from your investments.
Think of dividends like a slice of a company’s profits shared with you, the shareholder. This translates to predictable cash flow that strengthens your returns.
This guide dives into the top dividend stocks in Malaysia for 2024, helping you navigate this strategy and build a strong portfolio with a steady income.
Table of Contents
Top High Dividend Stocks in Malaysia for 2024
| Company Name (Bursa Code) | Sector | Current Dividend Yield (%) | Key Strengths |
| RHB Bank Bhd (1066) | Financials | 7.23 | Offers a high projected dividend yield, though earnings are expected to decline slightly in 2024. |
| Hap Seng Consolidated Bhd (3034) | Industrials | 5.61 | Boasts a consistent dividend payout history with a diversified business model across industries. |
| Bank Islam Malaysia Bhd (5258) | Financials | 11.24 | Very high projected dividend yield, focusing on Shariah-compliant financial services. |
| IGB Real Estate Investment Trust (5227) | REIT | 7.03 | Projects a high dividend yield for 2024, investing in retail properties across Malaysia and internationally. |
| Bermaz Auto Bhd (5248) | Consumer Cyclical | 7.47 | Offers a high dividend yield with projected earnings growth in 2024, focusing on Mazda vehicle distribution. |
| Hong Leong Industries Bhd (3301) | Consumer Cyclical | 6.12 | Projects a high dividend yield for 2024, manufacturing and selling consumer products like motorcycles and ceramics. |
| Public Bank Bhd (1295) | Financials | 6.18 | Offers a consistent dividend payout history with a focus on the retail banking sector. |
| Tenaga Nasional Berhad (5347) | Utilities | 5.80 | Historically, it offered a dividend yield exceeding 5%. Good improvements in dividend payment. |
| Genting Malaysia Berhad (4715) | Consumer Discretionary | 5.89 | Historically, it offered a dividend yield exceeding 5%. Promising improvements in dividend payment. |
| CIMB Group Holdings Berhad (1023) | Financials | 4.71 | Historically, it offered a dividend yield exceeding 5%. Good improvements in dividend payment. |
1. RHB Bank Bhd (1066)
- Sector: Financials
- Current Dividend Yield (%): 7.23% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: RHB Bank, a financial services group, offers a high projected dividend yield. However, earnings are expected to decline slightly in 2024.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 3.39% | 4.22% | 6.91% | 7.34% | 7.23% (projected) |
| Dividend Per Share | 0.18 | 0.33 | 0.40 | 0.40 | 0.04 |
2. Hap Seng Consolidated Bhd (3034)
- Sector: Industrials
- Current Dividend Yield (%): 5.61% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: Hap Seng Consolidated, a diversified investment holding company, boasts a consistent dividend payout history. Its businesses span palm oil, real estate, automotive, and more.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 2.91% | 4.55% | 4.69% | 5.49% | 5.61% (projected) |
| Dividend Per Share | 0.25 | 0.35 | 0.30 | 0.25 | 0.25 |
3. Bank Islam Malaysia Bhd (5258)
- Sector: Financials
- Current Dividend Yield (%): 11.24% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: Bank Islam Malaysia, a Shariah-compliant Islamic holding company, offers a very high projected dividend yield.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 2.96% | 3.64% | 3.81% | 7.24% | 11.24% (projected) |
| Dividend Per Share | 0.13 | 0.11 | 0.10 | 0.16 | 0.17 |
4. IGB Real Estate Investment Trust (5227)
- Sector: REIT (Real Estate Investment Trust)
- Current Dividend Yield (%): 7.03% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: IGB REIT, a retail property investment company with holdings in Malaysia and internationally, projects a high dividend yield for 2024.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | – | – | 5.65% | 6.66% | 7.03% (projected) |
| Dividend Per Share | – | – | 0.03 | 0.03 | 0.03 |
5. Bermaz Auto Bhd (5248)
- Sector: Consumer Cyclical
- Current Dividend Yield (%): 7.47% (projected)
- Dividend Frequency: Quarterly
- Financial Profile: Bermaz Auto, a distributor and retailer of Mazda vehicles, offers a high dividend yield with projected earnings growth in 2024.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 3.24% | 3.01% | 5.05% | 7.63% | 7.47% (projected) |
| Dividend Per Share | – | – | – | – | 0.19 |
6. Hong Leong Industries Bhd (3301)
- Sector: Consumer Cyclical
- Current Dividend Yield (%): 6.12% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: Hong Leong Industries, a manufacturer and seller of consumer products like motorcycles and ceramics, projects a high dividend yield for 2024.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 4.72% | 5.66% | 5.98% | 6.29% | 6.12% (projected) |
| Dividend Per Share | 0.42 | 0.52 | 0.55 | 0.57 | 0.57 |
7. Public Bank Bhd (1295)
- Sector: Financials
- Current Dividend Yield (%): 6.18% (projected)
- Dividend Frequency: Semi-Annual
- Financial Profile: Public Bank, a banking group focused on retail banking, offers a consistent dividend payout history.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 4.73% | 5.10% | 4.71% | 3.52% | 6.18% (projected) |
| Dividend Per Share | 0.08 | 0.21 | 0.20 | 0.14 | 0.04 |
8. Tenaga Nasional Berhad (5347)
- Sector: Utilities
- Current Dividend Yield: 5.80%
- Dividend Frequency: annually
- Financial Profile: Tenaga Nasional, Malaysia’s largest electric utility company, offers a historical dividend yield (2022) exceeding 5%. It generates electricity through various power plants and sells it to commercial, residential, and industrial customers.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 4.57% | 4.56% | 4.56% | – | 5.80% (projected) |
| Dividend Per Share | 0.22 | 0.40 | 0.38 | – | – |
9. Genting Malaysia Berhad (4715)
- Sector: Consumer Discretionary
- Current Dividend Yield: 5.89%
- Dividend Frequency: annually
- Financial Profile: Genting Malaysia, a resort and casino operator, offers a historical dividend yield (2022) close to 5%. Their resorts feature casinos, theme parks, and entertainment options, generating revenue primarily from Malaysia.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 2.23% | – | 2.24% | 5.89% | 5.89% (projected) |
| Dividend Per Share | 0.06 | – | 0.06 | 0.15 | 0.03 |
10. CIMB Group Holdings Berhad (1023)
- Sector: Financials
- Current Dividend Yield: 5.20% (projected)
- Dividend Frequency: biannually
- Financial Profile: CIMB Group, a full-service bank with a presence in Malaysia and ASEAN nations, offers a historical dividend yield (2022) exceeding 4.5%. They provide various banking services, with net interest income being their primary source of revenue.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Dividend Yield | 2.79% | 2.80% | 4.41% | 5.21% | 5.20% (projected) |
| Dividend Per Share | 0.12 | 0.15 | 0.26 | 0.31 | 0.37 |
Best Dividend Stocks in Malaysia with Low-Risk
Here are the three top dividend stocks in Malaysia in 2024 with low risk:
1. Pavilion Real Estate Investment Trust (PREIT)
- Sector: REIT
- Dividend Yield: 10.87% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
PREIT is a real estate investment trust (REIT) specialising in retail properties across Malaysia and Asia-Pacific.
Their earnings are expected to climb in 2024, leading to a projected dividend yield of 10.87%.
This increase is due to a rise in projected earnings per share and a higher dividend payout ratio (75%).
2. Malayan Banking Bhd (Maybank)
- Sector: Financials
- Dividend Yield: 6.46% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
Maybank, a leading financial services group in Southeast Asia, is one of the high-yield stocks in Malaysia, offering a reliable dividend stream.
While their earnings are expected to increase slightly in 2024, the projected dividend payout ratio (74.94%) keeps the dividend yield consistent with historical averages (around 6.46%).
This makes Maybank a good option for investors seeking a steady income source.
3. IGB Real Estate Investment Trust (IGB REIT)
- Sector: REIT
- Dividend Yield: 7.03% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
Another high-yield stock in Malaysia – IGB REIT focuses on retail property investment in Malaysia and internationally.
Their earnings are projected to grow in 2024, leading to a potentially high dividend yield of 7.03%.
However, keep in mind that their projected dividend payout ratio is quite high (103.81%), which might raise some questions about the long-term sustainability of this level of payouts.
High-Dividend Stocks in Malaysia with Huge Growth
Here are three more of the best dividend stocks in Malaysia with growth opportunities in 2024:
1. Axiata Group Bhd
- Sector: Communication Services
- Dividend Yield: 5.75% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
Axiata, a telecommunications company, is experiencing an earnings recovery in 2024.
This is expected to translate to a higher-than-average dividend yield of 5.75%.
However, the projected payout ratio is quite high (136%), so consider the long-term sustainability of this payout level before investing.
2. Hap Seng Consolidated Bhd
- Sector: Industrials
- Dividend Yield: 5.32% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
Hap Seng, a diversified holding company, offers a consistent dividend payout history (around 80%).
While earnings in 2024 are projected to be slightly lower than 2023, the expected payout ratio of this best dividend stock in Malaysia should maintain a dividend yield of 5.32%, making it a good option for income-oriented investors seeking stability.
3. Hong Leong Industries Bhd
- Sector: Consumer Cyclical
- Dividend Yield: 6.12% (projected)
- Dividend Frequency: Semi-annual
- Reason to Consider:
Hong Leong Industries, a consumer products company focused on motorcycles and ceramics, offers a projected dividend yield of 6.12% in 2024, exceeding historical averages.
However, the high payout ratio (118.28%) suggests potential limitations in long-term sustainability. Further research is recommended before investing.
Understanding High-Dividend Stocks
In the Malaysian context, high dividend stocks are not strictly defined. Generally, it is mostly stocks with a dividend yield consistently above the market average.
Historically, dividend yields in Malaysia have hovered around 4%, so stocks with yields significantly higher (e.g., 5% or above) could be considered top dividend stocks in Malaysia.
Understanding Key Metrics for Best Dividend Stocks in Malaysia
Metric #1 – Dividend Yield:
- This metric expresses the annual dividend payout as a percentage of the current stock price.
- It tells you how much income you will receive per dollar invested each year.
- Formula : (Dividend Paid / Stock Price ) x 100%
- For example, if a stock is priced at RM10 and pays a yearly dividend of RM0.50, the dividend yield would be 5% (RM0.50 / RM10 x 100%).
Metric #2 – Dividend Growth Rate:
- This metric indicates how much a company’s dividend payouts have increased year-over-year.
- A high and consistent growth rate suggests a company’s commitment to rewarding shareholders and potentially strong financial health.
- This information is usually public information and can be retrieved from quarterly/annual reports.
- Note: Past payout is not a good indicator of future dividend payouts. Use this information to understand the capability of the company instead.
Factors Influencing Dividend Payouts
Several factors influence how much and how often a company pays dividends:
Factor #1 – Profitability:
Companies need sufficient profits to distribute dividends. A company experiencing declining profits might be forced to cut or eliminate dividends.
Factor #2 – Maturity:
Established companies in mature industries with steady cash flow are more likely to prioritise consistent dividend payouts.
Factor #3 – Debt Levels:
High debt levels can limit a company’s ability to pay dividends as they may need to prioritise debt repayment.
Factor #4 – Growth Plans:
Companies with ambitious growth plans may reinvest a larger portion of their profits back into the business, potentially leading to lower or stagnant dividend payouts.
Risks Associated with High-Dividend Stocks in Malaysia
While high-yield stocks in Malaysia offer the allure of steady income, they also come with certain risks:
Risk #1 – Sustainability:
A high dividend yield can sometimes signify a struggling company trying to attract investors. The company might not be able to sustain high payouts in the long run.
Risk #2 – Lower Growth Potential:
Companies prioritising high dividends may be less likely to invest in research and development, potentially hindering future growth prospects.
Risk #3 – Market Volatility:
Dividend-paying stocks, especially those in mature industries, might not experience the same price appreciation as high-growth stocks during bull markets.
Conclusion
The Malaysian stock market offers great options for investors seeking high-yield stocks. When picking high-dividend stocks in Malaysia, consider the company’s financial health, payout history, and dividend sustainability. Sectors like REITs and utilities often provide stable dividends, especially during downturns. Look for companies that balance dividends with growth potential.
Focus on the top dividend stocks to build a high-yield portfolio in Malaysia. Always research and consult a financial advisor to ensure a strategy that supports income and long-term growth.
FAQs
Disclaimer:
This article is only offered for general informational reasons and is not meant to cover all facets of the subjects it addresses. It is not meant to be taken as legitimate investment advice you should rely on. You must seek expert or professional advice before acting or refraining from acting based on the information in this publication. The content in this publication does not represent advice from the BizTech Community. Past performance does not always guarantee a comparable outcome. We give no assurances that the information in the publication is accurate, full, or up to date, either explicitly or implicitly.