Top Malaysian (KLSE) Dividend Stocks

Top Malaysian (KLSE) Dividend Stocks

UPDATED Jul 06, 2022

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.

20 companies meet this criteria in the Malaysian market

Magni-Tech Industries Berhad, an investment holding company, manufactures and sells garments.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: MAGNI's dividend (5.24%) is in the top 25% of dividend payers in the MY market (5%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (9x) is below the MY market (13.9x)

  • Earnings are forecast to grow 16.76% per year

Risks

No risks detected for MAGNI from our risks checks.

View all Risks and Rewards

OSK Holdings Berhad, an investment holding company, operates the property sector in Malaysia and Australia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: OSK's dividend (5.71%) is in the top 25% of dividend payers in the MY market (5%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 57.1% below our estimate of its fair value

  • Earnings are forecast to grow 13.06% per year

Risks

No risks detected for OSK from our risks checks.

View all Risks and Rewards

Lingkaran Trans Kota Holdings Berhad, an investment holding company, engages in the design, construction, operation, management, and maintenance of Lebuhraya Damansara- Puchong highway in Malaysia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: LITRAK's dividend (6.26%) is in the top 25% of dividend payers in the MY market (5%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 62% below our estimate of its fair value

  • Earnings are forecast to grow 18.94% per year

Risks

No risks detected for LITRAK from our risks checks.

View all Risks and Rewards

Globetronics Technology Bhd, an investment holding company, engages in the manufacture, assembly, testing, and sale of integrated circuits, optoelectronic products, and chip carrier quartz crystal products.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: GTRONIC's dividend (6.76%) is in the top 25% of dividend payers in the MY market (5%)

  • Notable Dividend

  • Future Dividend Coverage

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 28.9% below our estimate of its fair value

  • Earnings are forecast to grow 8.98% per year

Risks

No risks detected for GTRONIC from our risks checks.

View all Risks and Rewards

Hong Leong Financial Group Berhad, an investment holding company, provides a range of financial services to consumer, corporate, and institutional customers.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: HLFG's dividend (2.39%) is low compared to the top 25% of dividend payers in the MY market (5%).

See Full Stock Report

Rewards

  • Trading at 30.7% below our estimate of its fair value

  • Earnings are forecast to grow 11.61% per year

  • Earnings have grown 7.5% per year over the past 5 years

Risks

No risks detected for HLFG from our risks checks.

View all Risks and Rewards

Bermaz Auto Berhad, an investment holding company, engages in the distribution and retail of new and used Mazda and Kia vehicles in Malaysia and the Philippines.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: BAUTO's dividend (5.15%) is in the top 25% of dividend payers in the MY market (5%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 37.1% below our estimate of its fair value

  • Earnings are forecast to grow 14.68% per year

Risks

No risks detected for BAUTO from our risks checks.

View all Risks and Rewards

Kawan Food Berhad, an investment holding company, manufactures, trades in, distributes, and sells frozen food products in Malaysia, rest of Asia, North America, Europe, Oceania, and Africa.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: KAWAN's dividend (1.83%) is low compared to the top 25% of dividend payers in the MY market (5%).

See Full Stock Report

Rewards

  • Trading at 59.6% below our estimate of its fair value

  • Earnings are forecast to grow 16.21% per year

Risks

No risks detected for KAWAN from our risks checks.

View all Risks and Rewards

Pintaras Jaya Berhad, an investment holding company, engages in undertaking piling contracts, and civil engineering and building construction works in Malaysia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: PTARAS's dividend (4.29%) is low compared to the top 25% of dividend payers in the MY market (5%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 15.5% below our estimate of its fair value

  • Earnings are forecast to grow 20.07% per year

Risks

  • Does not have a meaningful market cap (MYR391M)

  • Profit margins (9.1%) are lower than last year (17.3%)

  • Large one-off items impacting financial results

View all Risks and Rewards
Page 1 of 3