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Top Malaysian (KLSE) Banks Dividend Stocks
UPDATED Jul 04, 2022
What are the best Malaysian (KLSE) Banks Dividend Stocks?
According to our Simply Wall St analysis these are the best Malaysian Banks 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.
4 companies meet this criteria in the Malaysian market
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 (2.37%) is low compared to the top 25% of dividend payers in the MY market (4.97%).
Rewards
Trading at 30.3% 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.
RHB Bank Berhad provides commercial banking and finance related products and services in Malaysia and internationally.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: RHBBANK's dividend (7.01%) is in the top 25% of dividend payers in the MY market (4.97%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 29.8% below our estimate of its fair value
Earnings are forecast to grow 13% per year
Earnings grew by 24.2% over the past year
Risks
High level of non-cash earnings
Shareholders have been diluted in the past year
Malaysia Building Society Berhad, an investment holding company, provides banking and related financial services in Malaysia.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: MBSB's dividend (5.22%) is in the top 25% of dividend payers in the MY market (4.97%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Price-To-Earnings ratio (9.5x) is below the MY market (14.1x)
Earnings are forecast to grow 20.76% per year
Earnings have grown 3.3% per year over the past 5 years
Risks
Shareholders have been diluted in the past year
Large one-off items impacting financial results
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: AFFIN's dividend (6.58%) is in the top 25% of dividend payers in the MY market (4.97%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 8.2% below our estimate of its fair value
Earnings are forecast to grow 12.06% per year
Earnings grew by 241.9% over the past year
Risks
High level of non-cash earnings