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Top Malaysian (KLSE) Dividend Stocks
UPDATED Sep 23, 2023
What are the best Malaysian (KLSE) Dividend Stocks?
According to our Simply Wall St analysis these are the best Malaysian dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
8 companies meet this criteria in the Malaysian market
United U-LI Corporation Berhad, an investment holding company, manufactures and trades in steel cable support systems, cable management systems, integrated ceiling systems, building materials, fluorescent light fittings, and LED products in Malaysia and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: ULICORP's dividend (5.37%) is in the top 25% of dividend payers in the MY market (5.04%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 86.2% below our estimate of its fair value
Earnings are forecast to grow 24.44% per year
Risks
Does not have a meaningful market cap (MYR325M)
Allianz Malaysia Berhad, an investment holding company, underwrites various general and life insurance products in Malaysia.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: ALLIANZ's dividend (6.28%) is in the top 25% of dividend payers in the MY market (5.04%)
Notable Dividend
Stable Dividend
Rewards
Trading at 58.6% below our estimate of its fair value
Earnings are forecast to grow 22.47% per year
Risks
Profit margins (4.6%) are lower than last year (7.9%)
Petron Malaysia Refining & Marketing Bhd engages in manufacturing and marketing of petroleum products in Peninsular Malaysia.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: PETRONM's dividend (5.33%) is in the top 25% of dividend payers in the MY market (5.04%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 95.7% below our estimate of its fair value
Earnings are forecast to grow 24.64% per year
Risks
Profit margins (0.9%) are lower than last year (2.6%)
Scicom (MSC) Berhad, an investment holding company, engages in the provision of customer contact center outsourcing services in Malaysia, the Philippines, China, Singapore, Hong Kong, Sri Lanka, Thailand, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: SCICOM's dividend (7.21%) is in the top 25% of dividend payers in the MY market (5.04%)
Notable Dividend
Stable Dividend
Rewards
Trading at 12.6% below our estimate of its fair value
Earnings are forecast to grow 7.77% per year
Earnings have grown 7.8% per year over the past 5 years
Risks
Does not have a meaningful market cap (MYR395M)
BP Plastics Holding Bhd., an investment holding company, engages in the manufacturing and trading of plastic products in Malaysia, rest of Asia, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: BPPLAS's dividend (4.51%) is low compared to the top 25% of dividend payers in the MY market (5.04%).
Stable Dividend
Rewards
Trading at 1.8% below our estimate of its fair value
Earnings are forecast to grow 16.97% per year
Risks
Does not have a meaningful market cap (MYR343M)
Focus Point Holdings Berhad, an investment holding company, operates professional eye care centers primarily in Malaysia.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FOCUSP's dividend (3.97%) is low compared to the top 25% of dividend payers in the MY market (5.04%).
Stable Dividend
Rewards
Trading at 62.6% below our estimate of its fair value
Earnings are forecast to grow 6.98% per year
Earnings grew by 21.2% over the past year
Risks
Does not have a meaningful market cap (MYR349M)
Thong Guan Industries Berhad, an investment holding company, manufactures and trades in plastic products and packaged food, beverages, and other consumable products.
Dividend Criteria
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: TGUAN's dividend (3.06%) is low compared to the top 25% of dividend payers in the MY market (5.04%).
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 94.8% below our estimate of its fair value
Earnings are forecast to grow 15.93% per year
Risks
No risks detected for TGUAN from our risks checks.
Favelle Favco Berhad, an investment holding company, engages in the design, manufacture, supply, service, trading, and leasing of cranes under the Favelle Favco and Kroll brands in Malaysia and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: FAVCO's dividend (49.17%) is in the top 25% of dividend payers in the MY market (5.04%)
Notable Dividend
Stable Dividend
Rewards
Trading at 34.8% below our estimate of its fair value
Earnings are forecast to grow 23.75% per year
Earnings grew by 21.2% over the past year
Risks
Does not have a meaningful market cap (MYR423M)