Top 10 Dividend Stocks in Malaysia 2023
What is Dividend Stocks
Dividend stocks are shares in companies that pay out a portion of their profits to shareholders as dividends. These payments are a way for investors to earn passive income and can be distributed at regular intervals throughout the year. Such stocks are often issued by established, profitable companies in mature industries, and are favored by investors seeking a steady income stream, particularly retirees.
A key metric for evaluating dividend stocks is the dividend yield, which measures the dividend as a percentage of the stock price. A higher yield can be attractive, but it's important to assess the sustainability of the dividend given the company’s financial health.
10 High-Dividend Stocks in Malaysia 2023
The year 2023 has been particularly notable for investors seeking high dividend yields in the Malaysian market, with banks prominently featuring on the list of top performers. Almost half of the top 10 high-yield dividend stocks are financial institutions, highlighting the sector's robustness and its ability to provide consistent value to shareholders.
List of Highest Dividend Stocks Malaysia
Highest Dividend Yield TTM stocks in Malaysia in 2023, descend order
MBSB Bank, Div Yield TTM 11.97%
RHB Bank, Div Yield TTM 7.38%
MAY Bank, Div Yield TTM 6.64%
HAPSENG, Div Yield TTM 6.54%
AMBM, Div Yield TTM 6.47%
AXIATA, Div Yield TTM 6.22%
UDTPLT, Div Yield TTM 6.09%
HEIM, Div Yield TTM 5.69%
GENM, Div Yield TTM 5.64%
SIME, Div Yield TTM 5.46%
Summary
Leading the charge is MBSB Bank, which stands out with an exceptional trailing twelve-month (TTM) dividend yield nearing 12%, coupled with an impressive year-to-date (YTD) return of 32.22%. MBSB Bank's dividend of 0.085 MYR per share in April 2023 was a significant move, marking its first dividend distribution since 2021. The bank's transition from a non-bank lending institution to a full-fledged banking entity in 2018, following its merger with Asian Finance Bank Limited (AFB), has been a pivotal moment in its growth trajectory.
RHB Bank, Maybank, and Alliance Bank Malaysia Berhad have announced dividend yields of 7.38%, 6.64%, and 6.47%, respectively. These figures are indicative of the banks' dividend distribution strategies and their performance within the prevailing economic conditions.
Kenanga Research highlights the investor enthusiasm surrounding MBSB Bank, driven by the bank's inorganic growth and the anticipated synergistic advantages from its impending merger with the MIDF group. The merger is expected to further cement MBSB's position in the market, creating a financial powerhouse capable of delivering enhanced services and shareholder value.
This strong performance of banks in the dividend space indicates a trend where financial institutions are not only focused on sustaining profitability but are also committed to rewarding their shareholders. The sector's ability to provide attractive yields, especially in a year when the broader market has faced headwinds, underscores the banks' operational resilience and strategic foresight.
As we look beyond 2023, the banking sector's role in the high-yield dividend landscape is likely to remain significant, with institutions such as MBSB Bank leading the way in demonstrating the potential for growth and consistent returns. Investors will undoubtedly keep a keen eye on these financial giants as they continue to navigate the challenges and opportunities that lie ahead.
The Malaysian stock market in 2023 has not just been about the impressive yields offered by the banking sector; it has also seen commendable performances from non-banking entities that have made it into the top 10 dividend stocks list. Among them, Hap Seng Consolidated (HAPSENG) and Axiata Group (AXIATA) have showcased significant dividend yields of 6.54% and 6.22% respectively, despite experiencing dips in their stock prices, indicating their commitment to shareholder returns.
United Plantations (UTDPLT), with a strong dividend yield of 6.09%, has also delivered an impressive YTD return of 31.94%, highlighting the potential within the agriculture sector. Meanwhile, Heineken Malaysia (HEIM) and Genting Malaysia (GENM) have offered yields of 5.69% and 5.64%, respectively, suggesting that consumer goods and leisure sectors are still dependable sources of dividends. Sime Darby (SIME), completing the top 10 list with a 5.46% dividend yield and a 9.79% YTD change, represents the diversified interests of conglomerates in maintaining shareholder value through consistent dividend payments.
These non-banking stocks diversify the dividend-paying landscape in Malaysia, demonstrating that various industries can offer attractive returns to investors seeking income in addition to growth. As of December 22nd, 2023, these top-performing stocks with robust dividend yields continue to draw investor attention, bolstering confidence in the broader Malaysian market's ability to yield fruitful dividends across a spectrum of sectors.
Data as of Dec. 22nd 2023
Notes: The chart features the top 10 Malaysia stocks with the highest Dividend Yield (Trailing Twelve Months) and a market cap exceeding RM 5 billion.
Source: Bursa Malaysia, moomoo, the Edge Malaysia