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Top Malaysian (KLSE) Dividend Stocks
UPDATED Jun 28, 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.
19 companies meet this criteria in the Malaysian market
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 (4.94%)
Notable Dividend
Stable Dividend
Rewards
Trading at 57.5% 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.
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 (4.94%)
Notable Dividend
Stable Dividend
Rewards
Price-To-Earnings ratio (9x) is below the MY market (14.1x)
Earnings are forecast to grow 16.76% per year
Risks
No risks detected for MAGNI from our risks checks.
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 (6.25%) is in the top 25% of dividend payers in the MY market (4.94%)
Notable Dividend
Stable Dividend
Rewards
Trading at 60.2% 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.
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 (6.2%) is in the top 25% of dividend payers in the MY market (4.94%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 15.3% 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.
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 (2.38%) is low compared to the top 25% of dividend payers in the MY market (4.94%).
Rewards
Trading at 25.4% 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.
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 (4.33%) is low compared to the top 25% of dividend payers in the MY market (4.94%).
Stable Dividend
Rewards
Trading at 5.4% below our estimate of its fair value
Earnings are forecast to grow 20.07% per year
Risks
Does not have a meaningful market cap (MYR383M)
Profit margins (9.1%) are lower than last year (17.3%)
Large one-off items impacting financial results
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 (1.78%) is low compared to the top 25% of dividend payers in the MY market (4.94%).
Rewards
Trading at 55.8% 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.
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 (4.97%) is in the top 25% of dividend payers in the MY market (4.94%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 29.9% below our estimate of its fair value
Earnings are forecast to grow 14.28% per year
Risks
No risks detected for BAUTO from our risks checks.