Top Dividend Yield Stocks Malaysia to Buy (in 2020)

What are the most consistent and sustainable Dividend Yield Stocks In Malaysia?

Just so you know, this Is the most Practical & Highly Actionable Guide On The Planet Investing In the Top Dividend Yielding Stocks in Malaysia.

The Best Part?

I have included a full list of over 80+ top dividend paying counters in KLSE that will work in your favor in any economic condition.

In short, if you want sustainable and predictable dividend return from Malaysian share market, you will love this guide.

Let’s Get Started.

What Is Dividend Yield?

Dividend Yield Formula (Calculation)

How Dividend Stocks Work

How To Invest In Best Dividend Stocks Malaysia?

What Are The High Dividend Yield Stocks In Malaysia?

Is Dividend Investing Worth It?

Why Dividend Investing?

Where To Buy Or Purchase Dividend Stocks Online?

Can Dividend Yield Stocks Make You Rich Overnight?

Dividend Investing Strategy For Passive Income? 

When Do Dividend Stocks Pay Out?

How Do Beginners Start Dividend Investing With Little Money?

How is stock dividend calculated?

The formula for stock dividend yield is (Most Recent Yearly Dividend / Current Stocks Price). For example, (RM 1 / RM 20) x 100% = 5% dividend return

Which are the best dividend stocks?

Oh, you mean, what stocks pay the most dividends right? Well, obviously it changes all the time as the market is dynamic but generally, in Bursa Malaysia, you want to monitor these stocks: Hap Seng Consolidated, Public Bank, DIGI, Tenaga Nasional, RHB Bank, Petronas Gas, Petronas Chemicals Group, CIMB Group Holdings, AMMB Holdings, Malayan Banking.

Are dividend stock worth it?

Yes absolutely because it gives you ‘safety net’ in the form of tangible cash flow even though the stock price is down and you experience unrealized paper loss on your stocks holdings.

What is a good dividend yield in stocks?

Answer varies depending on the current Fixed Deposit (FD) rate. If FD (risk free) rate is 8% a year, then dividend yield of no lesser than 9% per year can be considered good. It has to be relative to that; say if FD rate is 2.70%, then stocks dividend of 3% or above is good.


What is Dividend Yield?

Usually expressed in percentage, it is the dividend per share, divided by the stocks price per share.

Dividend yield is meant to compute the return on investment (shares), taking into account only the returns in the form of total annual cash flows declared by the public-listed entity company during the year

Unlike preferred stock, there is no stipulated dividend for common stock (aka “ordinary shares”).

Instead, dividends paid to shareholders of common stock are declared as and when it is available, by management of the company, usually with regard to the company’s earnings.

Past dividend declared should neither be taken as an indicator or expectation for future dividends; in fact, there could even be none at all.


Dividend Yield Formula (Calculation)

You may wonder, the price of a stocks and dividend declared changes frequently, so how is stock dividend being calculated?

The general formula for dividend yield: [Most Recent Full Year Dividend / Current Stocks Price]

For instance, [RM 1 / RM 20] x 100% = 5%

This is usually done to compute Trailing Dividend Yield.

Trailing dividend yield represents dividend percentage paid over a prior period, typically one year. A trailing twelve month dividend yield, abbreviated as “TTM”, includes all dividends paid during the past financial year year to calculate the dividend yield.

While a trailing dividend can be indicative of future dividends, it can be misleading as it does not account for dividend increases or decreases, nor does it consider any special dividend that may or may not be declared in the future.

On the contrary, Forward Dividend Yield is a projection of the future dividend yield of a stock. It may be derived from an analyst’s estimate, or simply, the company’s guidance.

The computation is done by taking the first quarterly or half-yearly dividend payment and annualize it.

Then, divide that number by the current stock price.

In other words, if the first quarterly dividend was 5 cents and the current stock price was 10 per share, the forward dividend yield would be (.05*4)/10= 2%.


How Dividend Stocks Work

How does dividend investing work is not different from how stocks investing work, in general.

There are more than thousands of companies listed in the stocks exchange.

Watch this stocks investing lesson

You have to start somewhere by focusing on a specific stocks sector.

Sectors like:

  • Plantation stocks
  • Property stocks
  • Finance stocks
  • Infrastructure stocks
  • Technology stocks
  • Trading/Services Stocks
  • Industrial Goods/Services Stocks
  • Consumer Goods Stocks
  • REIT stocks

After you choosing the stocks sectors, you may still need to further niche down if the stocks sector is a huge one in Malaysian stock market.

For example, 2 of the most resilient stocks sector in any economic conditions are industrial goods/services stocks and consumer goods stocks.

Consumer stocks could be further sub categorized into household products stocks, food & beverages stocks, retailer stocks, etc.

Under these sub-categories, then you want to pick the winners among them, like the highest RoE, market leaders etc.

For a complete stocks investing guide in Malaysian share market, head over to – How to Invest in Stocks in Malaysia (beginnner-friendly guide)


How to Invest in Best Dividend Stocks Malaysia?

How to execute Dividend Investing Strategy like a Pro, regardless of whether the stock market goes up or down?

Most People get it wrong, and frankly, even your bankers or accountants tend to overlook this too

Watch this lesson

What are the High Dividend Yield Stocks in Malaysia?

You may wonder – what dividend stocks to buy, or what dividend yielding stocks to hold onto forever?

Which Dividend Stocks is the Best?

Your starting point is to get a dividend investing blueprint in the form of a list below:

CompanyBusinessDividend Payout ratioShare price (RM)Rolling 4 Quarter Dividend Yield
JaycorpFurniture & Flooring83%0.96510.88%
Zhulian CorpTrading & Distribution121%1.2610.31%
United PlantationsOil palm / rubber98.50%13.1810.24%
British American TobaccoTobacco97.98%10.589.92%
Magni Tech IndustriesApparel / footware66.9%2.228.46%
Hai-OTrading & distribution135.13%1.97.89%
Classic ScenicHouseware & Durables115.74%0.6757.4%
Tower REITREITs148%0.7556.8%
Freight Mgmt HoldingsLogistics81.4%0.526.7%
MagnumGaming88%2.236.5%
Panasonic ManufacturingConsumer electronics / eletrical appliances103%30.986.39%
Wellcall HoldingsRubber product manufacturing75.42%0.8456.39%
Uchi TechConsumer Electronics94.51%2.526.35%
Hap Seng IndustriesFood & beverage116.73%0.956.32%
Lii Hen IndustriesFurniture & flooring32.24%2.675.4%
ScicomSaaS79.23%0.9355.3%
Poh HuatFurniture & flooring31.16%1.165.17%
Suria CapitalPort operator & services36.7%0.985.1%
HeinekenBrewery102%22.244.85%
Chin Well HoldingsIron & Steel46.32%1.024.75%
Source: TheEdge & EquitiesTracker for illustration only as of 10 July 2020

Or something like this:

You can sort this table by company name, sector & market
You can sort this table by company name, sector & market
CompanyTickerSectorMarket
Complete Logistics Services Bhd COMPLET (5136) Transportation & Logistics Market
LBI Capital LBICAP (8494) Property MAIN
Resintech Bhd RESINTC (7232) Industrial Products MAIN
Brite-Tech Bhd BTECH (0011) Utilities ACE
SCC Holdings Bhd SCC Holdings Bhd Consumer ACE
Golden Pharos Bhd Golden Pharos Bhd Industrial Products MAIN
A-Rank Bhd ARANK (7214) Industrial Products MAIN
Sapura Industrial Bhd SAPIND (7811) Industrial Products MAIN
Lee Swee Kiat Group Bhd LEESK (8079) Consumer MAIN
CWG Holdings Bhd CWG (9423) Consumer MAIN
Teo Guan Lee Corp Bhd TGL (9369) Consumer MAIN
Pan Malaysia Corp Bhd PMCORP (4081) Consumer MAIN
AYS Ventures Bhd AYS (5021) Industrial Products MAIN
Cabnet Holdings Bhd CABNET (0191) Technology ACE
Timberwell Bhd TIMWELL (7854) Industrial Products MAIN
FIMA Corp FIMACOR (3107) Industrial Products MAIN
Perusahaan Sadur Timar M'sia Bhd PERSTIM (5436) Industrial Products MAIN
Land & General Bhd L&G (3174) Property MAIN
Kumpulan Perangsang Selangor Bhd KPS (5843) Industrial Products MAIN
Classic Scenic Bhd CSCENIC (7202) Consumer MAIN
Tien Wah Press Holding Bhd TIENWAH (7374) Industrial Products MAIN
AmFIRST REIT AMFIRST (5120) REIT MAIN
I-Bhd IBHD (4251) Property MAIN
KIP REIT KIPREIT (5280) REIT MAIN
MAA Group MAA (1198) Finance MAIN
Atrium REIT ATRIUM (5130) REIT MAIN
Amanah Raya REIT ARREIT (5127) REIT MAIN
Hektar REIT HEKTAR (5121) REIT MAIN
Hevea Board Bhd HEVEA (5095) Industrial Products MAIN
FCW Holdings Bhd FCW (2755) Consumer MAIN
Johore Tin Bhd JOHOTIN (7167) Consumer MAIN
Muhibbah Engineering Bhd MUHIBAH (5703) Construction MAIN
Hup Seng Industries Bhd HUPSENG (5024) Consumer MAIN
Elsoft Research Bhd ELSOFT (0090) Technology MAIN
Paramount Corp Bhd PARAMON (1724) Property MAIN
Lii Hen Industries Bhd LIIHEN (7089) Consumer MAIN
Favelle Favco Bhd FAVCO (7229) Industrial Product MAIN
Pharmaniaga Bhd PHARMA (7081) Healthcare MAIN
Ann Joo Resources Bhd ANNJOO (6556) Industrial Products MAIN
Zhulian Corp Bhd ZHULIAN (5131) Consumer MAIN
Eastern & Oriental Bhd E&O (3417) Property MAIN
SHL Consolidated Bhd SHL (6017) Property MAIN
TA Enterprise Bhd TA (4898) Finance MAIN
MRCB-QUILL REIT MQREIT (5123) REIT MAIN
UOA REIT UOAREIT (5110) REIT MAIN
Al-Aqar Healthcare REIT ALAQAR (5116) REIT MAIN
YTL Hospitality REIT YTLREIT (5109) REIT MAIN
Capitaland Malaysia Mall Bhd CMMT (5180) REIT MAIN
Berjaya Sports Toto Bhd BJTOTO (1562) Consumer MAIN
Matrix Concept Holdings Bhd MATRIX (5236) Property MAIN
Mah Sing Group Bhd MAHSING (8583) Property MAIN
Magnum Bhd MAGNUM (3859) Consumer MAIN
Panasonic Manufacturing M'sia Bhd PANAMY (3719) Consumer MAIN
TA Global Bhd TAGB (5158) Property MAIN
Malakoff Corp Bhd MALAKOF (5264) Utilities MAIN
UOA Development Bhd UOAREIT (5110) REIT MAIN
Bermaz Auto Bhd BAUTO (5248) Consumer MAIN
AirAsia Group Bhd AIRASIA (5099) Consumer MAIN
Lotte Chemcal Titan Holding Bhd LCTITAN (5284) Industrial Product MAIN
British American Tobacco Bhd BAT (4162) Consumer MAIN
IOI Properties Group Bhd IOIPG (5249) Property MAIN
Inari Amertron Bhd INARI (0166) Technology MAIN
Sunway Bhd SUNWAY (5211) Industrial Product MAIN
Gamuda Bhd GAMUDA (5398) Construction MAIN
Heineken Malaysia Bhd HEIM (3255) Consumer MAIN
SP Setia Bhd SPSETIA (8664) Property MAIN
Batu Kawan Bhd BKAWAN (1899) Plantation MAIN
BIMB Holdings Bhd BIMB (5258) Finance MAIN
LPI Capital Bhd LPI (8621) Finance MAIN
IGB REIT IGBREIT (5227) REIT MAIN
Pavilion REIT PAVREIT (5212) REIT MAIN
Sunway REIT SUNREIT (5176) REIT MAIN
Astro Malaysia Holdings Bhd ASTRO (6399) Telco & Media MAIN
Malaysia Building Society Bhd MBSB (1171) Finance MAIN
YTL Power International Bhd YTLPOWR (6742) Utilities MAIN
Hap Seng Consolidated Bhd HAPSENG (3034) Industrial Products MAIN
Public Bank Bhd PBBANK (1295) Finance MAIN
DIGI.com Bhd DIGI (6947) Telco & Media MAIN
Tenaga Nasional Bhd TENAGA (5347) Utilities MAIN
RHB Bank Bhd RHBBANK (1066) Finance MAIN
Petronas Gas Bhd PETGAS (6033) Utilities MAIN
Petronas Chemicals Group Bhd PCHEM (5183) Industrial Products MAIN
CIMB Group Holdings Bhd CIMB (1023) Finance MAIN
AMMB Holdings Bhd AMBANK (1015) Finance MAIN
Malayan Banking Bhd MAYBANK (1155) Finance MAIN

But don’t jump into buying any dividend stocks listed above without first understand this lesson to ensure you don’t lose money carelessly


Is dividend investing worth it?

You may wonder if dividend stocks are generally safer than other stocks, and are dividend stocks worth it?

The short answer is – Yes absolutely because it gives you ‘safety net’ in the form of tangible cash flow even though the stock price is down and you experience unrealized paper loss on your stocks holdings.

Watch the lesson below to comprehend more.

Why Dividend Investing?

You may wonder if dividend investing work,

…or whether dividend stocks are Good or Better than other stocks that don’t distribute dividends on regular basis

Traditionally, any stocks with above average dividend yield are deemed desirable among stocks investors.

Here’s why

A high dividend yield can reflect on undervalued or underpriced nature of the company relative to its stock price.

or that the company has fallen on hard times and future dividends will not be as high as previous ones.

Similarly a low dividend yield can be considered evidence that the stock is overpriced or that future dividends might be higher. Some investors may find a higher dividend yield attractive, for instance as an aid to marketing a fund to retail investors, or maybe because they cannot get their hands on the capital, which may be tied up in a trust arrangement.

In contrast some investors may find a higher dividend yield unattractive, perhaps because it increases their tax bill.

In a bullish stock market, dividend investing tend to become less popular stocks investors and speculators alike are chasing price appreciation over dividends as the main form of return on investments.

In a bearish share market, however, dividend investing becomes the favored playbook for long term investors.

Frequently Asked Questions on Dividend Stocks & Dividend Investing

Where to Buy or Purchase Dividend Stocks Online?

It is no difference from buying any stocks in the stock market. You need a brokerage + CDS account.

Watch how I use the fastest way to open an online stocks brokerage & CDS account in 10 minutes without needing to sign any hard copy documents.

Or even leaving your desk! (aka getting your butt off the chair :D)


Here’s where to go about opening a trading account 👇 👇 👇

Malaysia online stocks brokerage fee comparison

BrokersCash Upfront rateCollateralized rateStandard rateOnline rate
Rakuten Trade 0-1k: RM 7 1-10k: RM 9 10-100k: 0.1% >RM 100k: RM 100 Minimum RM 7 (RakuMargin) 0-1k: RM 7 1-10k: RM 9 10-100k: 0.1% >RM 100k: RM 100 Minimum RM 7
Hong Leong eBroking Intraday: 0.10% Minimum: RM 8 0-100k: 0.38% >RM 100k: 0.18% Minimum RM 8
UOB KayHian 0.10% Minimum: RM 8 0-100k: 0.30% >RM 100k: 0.20% Intraday: 0.10% Minimum RM 8
JF Apex 0.10% Minimum: RM 12 0-100k: 0.60% >RM 100k: 0.30% Minimum RM 28 30% discount as low as 0.20% Intraday: 0.15%
Mercury Securities Intraday: 0.10% Minimum: RM 12 0-100k: 0.42% >RM 100k: 0.21% Intraday: 0.15% Minimum RM 12
Kenanga 0-100k: 0.42% >RM 100k: 0.21% Minimum RM 28

Conventionally, here’s the tedious process:

  • Open a Central Depository System (CDS) account: you can do this by approaching an authorized depository agent such as stockbroking company and some banks.

-provide photocopies of IC (identity card)
-pay a one time fee RM10

You will receive the account document by mail.

  • Open a trading account with stockbroker: this will be done simultaneously when you open the CDS account.

-need to provide income statement
-fill out trading account form
-the stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list – in order to qualify you and set your trading limit

What is a CDS account?

a) it allows you to buy and sell shares
b) it also allows you to trade non-equity counters such as bond and warrants
c) it is something like a bank account – you keep cash in bank accounts, you keep shares in CDS accounts.
d) you will get CDS account statement monthly. If there is no activity, you will still get the statement on June and December.

Fees are calculated per transaction (buy or sell). They are:

a) brokerage fees – 0.1% to 0.4% excluding GST, cash- upfront account like Rakuten Trade stockbroking account shown above normally is on the lower end (0.1%)

b) Clearing fees – 0.03% of contract value subject to cap of RM200

c) Stamp duty – RM1 for every RM1,000 worth of value, for stocks of mid and small cap companies in Malaysia will be waived with effect from March 2018 for 3 years

For a complete stocks investing guide in Malaysian share market, head over to – https://howtofinancemoney.com/how-to-invest-in-stocks

Can dividend yield stocks make you rich overnight?

Related questions: “Are dividend stocks worth it?”, “Are dividend stocks less volatile?”

Yes

Also can be NO

Dividend investing strategy for passive income? 

There are more than thousands of companies listed in the stocks exchange. How do you choose the stock to invest in, the ones that will give you passive income for retirement, while you sleep soundly at night?

This lesson will help you start at a high level, before you shortlist exact stocks (business) you want to invest into.

note: when you invest in unit trust or even robo advisor like Stashaway, you can check income distributions of the funds, because these come from the stocks dividends as well.

Dividend stocks are usually the Resilient type.

When do dividend stocks pay out?

If a dividend is declared, shareholders are notified via press release and the information is usually reported through major stock quoting services for easy reference. This is step one of the process, called the declaration date.

At the time of declaration, a record date, or date of record, is set, meaning all shareholders on record on that date are entitled to the dividend payment.

The day following the record date is called the ex-date or date the stock begins trading ex-dividend. This means that a buyer on ex-date is purchasing shares that are not entitled to receive the most recent dividend payment. The payable date follows usually about one month after the record date.

Usually dividend payment schedule is either half yearly or quarterly, rarely month (although that would be nice!)

How do beginners start dividend investing with little money?

After opening your CDS/stock brokerage account, the first thing to do is to focus on a specific stocks sector in the Malaysian share market

  1. Plantation stocks
  2. Property stocks
  3. Finance stocks
  4. Infrastructure stocks
  5. Technology stocks
  6. Trading/Services Stocks
  7. Industrial Goods/Services Stocks
  8. Consumer Goods Stocks
  9. REIT stocks

After choosing the stocks sectors, you may still need to further niche down if the stocks sector is a huge one in Malaysian stock market.

For example, 2 of the most resilient stocks sector in any economic conditions are industrial goods/services stocks and consumer goods stocks.

Consumer stocks could be further sub categorized into household products stocks, food & beverages stocks, retailer stocks, etc.

Under these sub-categories, then you want to pick the winners among them, like the highest RoE, market leaders etc.

Incidentally, the lesson below on how to invest with little money may help you.

Watch this lesson below on using selecting the best dividend stocks to build up your retirement nest egg.

How and Where to Invest Money in a Recession?

In other words, how to make money during a recession stock market? Answers in the video below:

Can dividend stocks beat EPF (KWSP) Dividend?

More resources:

This Post Has 5 Comments

  1. Carol

    I want it. Thanks

  2. Carol

    Thanks for your sharing, i am a beginner. 🙂

  3. Claudia

    Hello. I’m new to this. For REITs (only), the dividend is taxable right? Is it 100% subjected to tax? How should I file this?
    Because I came upon this SUNREIT Income Distribution statement that says, e.g. ‘Third Income Distribution of 2.58 sen per unit (of which 2.08 sen per unit is taxable, 0.47 sen per unit is non-taxable and 0.03 sen per unit is tax-exempt) for the third quarter ended 31 March 2019.’
    Is it the same for all REITs, that not the entire dividend is taxable?
    Your kind attention is very much appreciated.

    1. CF Lieu

      are you asking how you should file your dividends from REITs in your B/BE form?

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