We keep hearing “invest in start-ups”. But is it a piece of good advice for investment?
Yes, with a deep understanding of their business core value and potential, you might make an accurate investment decision and reap its dividend.
However, most investors will choose a mature company that shows stability and sustainability; in other words, companies that issue high dividend stocks in Malaysia.
No blanket suits every bed, so how do you determine which one to buy?
If you’re looking for steady gains, you’ll enjoy researching these high dividend stocks in Malaysia.
The saying “only invest in what you know” is true; no matter how great the result is, you can’t copy and paste and wait for your money to expand. So the hard part is knowing which one is the right choice.
There are three key measures for determining which companies have high dividend stocks in Malaysia.
Table of Contents
Key Metrics for the Best High Dividend Stocks in Malaysia
1. Dividend Yield
When harvesting a corn field, you will set a percentage of its profit to share with people who help you grow the field relative to the market price per share.
Similarly, In most cases, you might want to find a company with a consistent track record of a yearly dividend yield.
Here’s how you can calculate the dividend yield:
Dividend Yield = Annual Dividends Per Share / Current Share Price
One thing worth noting is that the following dividend yield percentage is based on the last updated share price. As the share price is not fixed, you are advised to check regularly.
2. The business
I don’t know about you. But when I purchase anything online, I will research their reviews, brands, shipments, and reputations. The same goes for investing; it’s vital to analyse key metrics such as dividend yield and dividend payout ratio.
Usually, a mid to large-sized company offers a lower dividend to ensure consistent payouts. Understand the business well, and then you will grasp its potential.
3. Sustainable dividend payout ratio
Even though it looks pretty in your portfolio to have high dividend stocks in Malaysia, please be cautious.
Companies as such tend to pump more money out rather than reinvest it into their businesses, usually resulting in lower sustainability and a higher likelihood of a crash.
A healthy payout should be around 33%–55%; that’s where you should aim. Note that the number varies depending on the type of business and operation the company is running.
Now, let’s review the top 10 high dividend stocks in Malaysia
10 Best High Dividend Stocks in Malaysia with Great Prospects
This list shows the top high dividend stocks in Malaysia with a strong, consistent portfolio that stands out for decades and years to come.
Whether you’re a new or experienced investor, you can benefit from this list I have compiled.
1. Malayan Banking Berhad (TTM Dividend Yield of 6.44%)
Also known as Maybank, is the fourth largest bank in Southeast Asia by assets worth more than RM834 billion, with revenue reaching RM50.19 billion in just 63 years.
It is also the most used bank across this country, with most government institutions and multinational corporations using its services.
Maybank is also said to continue to record strong progress in its sustainable finance target, having banked RM34 billion in the last two years and progressing to more than RM50 billion by 2025.
Maybank, the largest publicly listed company in Bursa Malaysia, holds a prominent position in the market.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 7.32 | 5.95 | 6.64 | 6.64 | 9.02 |
| Payout Ratio % | 77.41 | 67.64 | 113.46 | 83.97 | 82.43 |
2. Sime Darby Property Berhad (TTM Dividend Yield of 4.88%)
As Malaysia’s largest property developer, it topped others with an estimated gross development value of RM86.95 billion. As sustainability has been their beacon for a decade, this includes every segment of their township, communities, products, and services.
A good 42.55% dividend payout ratio also shows they have enough fuel to reinvest and develop more in the coming years. Other data shows the company’s payout ratio consistently exceeds 20% yearly.
This is why Sime Darby is one of the companies with high dividend stocks in Malaysia.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 4.33 | 4.33 | 6.49 | 4.98 | 1.30 |
| Payout Ratio % | 57.38 | 82.93 | 64.37 | 75.43 | 42.55 |
3. Petronas Gas Berhad (TTM Dividend Yield of 4.18%)
Established in 1983, this prominent oil and gas company in Malaysia was successfully listed in Bursa Malaysia in 1995, securing its position as a key player in the market.
The company’s potential is nearly limitless, given its dominant presence in gas processing, gas transmission, and regasification, which form the bedrock of its core business.
Despite the latest electric vehicle entering the market, petrol cars are evergreen, and jets, planes, and other vehicles still rely strongly on petrol fuel for god-knows how long.
With a strong company portfolio for decades, added with a consistent dividend payout every year, making it a top pick among mature investors.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 4.85 | 7.51 | 4.85 | 4.26 | 4.32 |
| Payout Ratio % | 73.64 | 129.95 | 76.62 | 98.66 | 85.83 |
4. Tenaga Nasional Berhad (TTM Dividend Yield of 3.91%)
As the only electric and utility company in Malaysia, it succeeded in monopolising the market.
Besides, as the largest publicly listed power company in Southeast Asia, they play a pivotal role in guaranteeing a consistent electricity supply to households and businesses while maintaining affordable tariffs.
As nobody could live well without electricity, they positioned themselves as the trusted power provider for Malaysian homes.
This opens many doors for investors, as essential businesses are almost impossible to shut down. These types of stocks are what we call non-cyclical stocks.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 10.73 | 8.58 | 4.29 | 4.94 | 4.89 |
| Payout Ratio % | 66.55 | 145.73 | 124.74 | 62.98 | 57.60 |
5. Genting Berhad (TTM Dividend Yield of 3.67%)
This diversified investment holding company primarily focuses on various sectors, including leisure and hospitality, gaming and entertainment, etc. The company operates in Malaysia and abroad.
Their various businesses have made a solid foundation for their reputations, making it one of the ultimate entertainment and staycations for Malaysians and tourists.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 4.71 | 3.21 | 2.36 | 3.43 | 3.67 |
| Payout Ratio % | 37.63 | -82.71 | -23.87 | -231 |
6. CIMB Group Holdings Berhad (TTM Dividend Yield of 4.59%)
As a commercial bank in Malaysia, they offer various domestic and global banking products and services.
Their business activity revolves around four segments: consumer banking, wholesale banking, commercial banking, digital assets and group funding.
They are one of ASEAN’s top banks and a world leader in Islamic finance.
Besides, they have been listed on the Main Market of Bursa Malaysia since 1987 and reached a market capitalisation of RM56.6 billion in March 2023.
CIMB’s total assets stand at RM695.6 billion.
The dividend payout ratio of CIMB is 48.55%, not because they are desperate; they are just that good, just like the tiger (Malayan Banking).
Fret not; their shareholder’s fund is at RM65.4 billion, and it isn’t going down the drain any sooner.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 4.75 | 0.88 | 4.20 | 4.75 | 4.64 |
| Payout Ratio % | 17.5 | 99.75 | 6.22 | 11.95 | 48.55 |
7. Lpi Capital (TTM Dividend Yield of 5.08%)
Previously known as London & Pacific Insurance Company Berhad, it has been a wholly-owned subsidiary of Lonpac Insurance Bhd since May 1999.
With a robust asset base of RM5.1 billion and a wonderful return on assets of 5.4, this company offers a wide array of comprehensive insurance solutions.
Their offerings serve multiple customer needs, ranging from individual policies to the underwriting of large-scale industrial projects. General insurance and investment holdings are two of the company’s parts.
They can pay out 83% of their dividends. Additionally, the company has the most stable average dividend return of 5.39% over the past five years.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 5.43 | 5.58 | 5.74 | 4.65 | 5.07 |
| Payout Ratio % | 85.37 | 83.93 | 84.3 | 100.67 | 83.72 |
8. Astro Malaysia Holdings (TTM Dividend Yield of 3.85%)
It is a telecommunications and media holding company and Malaysia’s leading content and entertainment service.
The company offers a variety of segments, including television, radio, home shopping, and more.
It reaches 5.5 million Malaysian households via television, radio, digital, and e-commerce platforms, and its FM radio has 17.7 million weekly listeners and 8.4 million online shoppers.
Their dividend payout ratio of 110% shows a strong reinvestment into the business, combined with a 51.5% five-year average dividend yield, making it one of the best choices to invest in.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 13.53 | 11.28 | 12.03 | 10.15 | 4.51 |
| Payout Ratio % | 123.97 | 59.69 | 53.15 | 96.10 | 110.29 |
9. Nestle (Malaysia) Berhad (TTM Yield of 1.99%)
Nestle is an MNC with nutrition, health, and well-being as its core business. The company is strategically positioned in two key segments: food and beverages and beyond.
These segments cover various offerings, including e-nutrition, Nestle Professional, Nestle Health Science, and NESPRESSO.
Dairy, coffee, doods, ready-to-drink, ice cream, confectionery, healthcare nutrition, maternity and child nutrition, breakfast cereals, and out-of-home are only some of the other categories this company excels.
Besides, it gives a dividend payout ratio of 98.36%. Nestle has sustained itself in the F&B market for over 100 years since 1912.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 2.12 | 1.75 | 1.83 | 1.98 | 0.53 |
| Payout Ratio % | 97.56 | 118.73 | 95.45 | 91.53 | 98.36 |
10. Bursa Malaysia Berhad (TTM Dividend Yield of 3.86%)
This corporation operates a fully integrated exchange that provides various exchange-related facilities, including listing, trading, clearing, settlement, and depository services. Most of its customers are members of ASEAN, and it is also one of the largest bourses in the region.
Depending on their size, hundreds of companies seek refuge there and are eventually listed on the main or ACE markets.
Securities trading and derivatives trading make up the bulk of its business. It maintained an average 4.63% dividend yield and a consistent average payout ratio of 98.61% within five years.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Dividend Yield % | 3.12 | 7.65 | 6.15 | 3.97 | 2.25 |
| Payout Ratio % | 95.64 | 58.67 | 132.10 | 114.3 | 92.33 |
Conclusion
Investing in high dividend stocks in Malaysia might be your go-to when looking for a low-risk good option.
A little thing to remember: diversify your investment and not put it all in one basket so that you might not lose it all and increase your sustainability. Also, do your homework to learn how to analyze a company’s financial position.
You could achieve financial independence through a series of income streams.
While high dividend stocks are one of the pillars of wealth even in 2023, their overall performance would not be as good as growth stocks if you were looking for higher returns quickly.
Therefore, your goal will ultimately determine your ideal investment options. If you are a beginner, don’t fret. You can check out the article on how to invest in stocks.
As an intelligent Malaysian investor, be aware and fully prepared for the risks by reading data about the best high dividend stocks in Malaysia.
Make your own analysis and read the reports of the high dividend stocks in Malaysia if necessary. The more you know, the more golden opportunities are unlocked.
Hard work will pay off, and you will get there if you keep trying and taking calculated risks.
All the best!
**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. A comparable outcome is not always assured by past performance. We give no assurances that the information in the publication is accurate, full, or up to date, either explicitly or implicitly.
