The Dividend yield is one of the main factors to consider when investing in dividend-paying stocks in Malaysia. High dividend stocks make great investments for those in need of current income.
After turbulent 2018, Bursa Malaysia Investors should stick to high dividend yielding counters with strong earnings growth anticipation to ride out the current volatility in the stock market.
Investors who believe in safe investment always tend to opt for stocks recommendation for long-term investment and thus concentrate on stocks which can pull high dividend yields in along term.
Why Dividend Yield Stock?
Dividend yields are the segment of a company’s profits that are distributed to shareholders. It is a financial ratio that represents the dividend income per share when divided by price per share.
For long-term investors, dividends can be very beneficial, as they can be reinvested and used to purchase more shares, i.e. the investor does not have to commit more of his or her own resources to increase their equity holdings.
Investors define a company a good company that concentrates on keeping their shareholders, stakeholders, and investors happy. Being market leaders of Malaysia stock advisory industry, we keep a close eye on the small and big movements that such companies take and accordingly look after providing the latest KLSE stock tips.
Check out the list of Malaysian high dividend yield stock recommendations for long-term investment in Malaysia.
Highest Dividend Stock by Yield More Than 5%
1. Astro Malaysia Holdings Bhd
The first stock we pick in our list is Astro Malaysia Holdings Berhad with maximum dividend yield 7.42% is Malaysia’s leading content and consumer company in the TV, OTT, radio, digital and commerce space with growing ASEAN presence.
The company total market cap is 8.343 B and its current share price on 2nd January was at 1.330 share price with an increment of 0.030 (2.31%). Whereas the Bursa Malaysia market is running down by 21.50 (-1.27%) at 1669.08.
Astro Malaysia Bhd Financial Stats
| Number of Shares | 3.959 B |
| P/E Ratio | 13.33 |
| ROE | 5.59% |
| Dividend (Cent) | 15.5 |
| Dividend Yield | 6.86% |
2. S P Setia Bhd
The second stock we pick is S P SETIA Bhd with dividend yield 6.86% is an investment holding company, engages in the property development, construction and infrastructure, and wood-based manufacturing and trading businesses primarily in Malaysia, Vietnam, Singapore, and Australia.
The company total market cap is 8.496 B. On 27 February 2019, S P Setia, declared a final dividend of 4.55 sen per S P Setia Share for the financial year ended 31 December 2018, and determined that the dividend reinvestment plan shall apply to the entire Final Dividend (“11th DRP”).
S P SETIA Bhd Financial Stats
| Number of Shares | 3.959 B |
| P/E Ratio | 13.33 |
| ROE | 5.59% |
| Dividend (Cent) | 15.5 |
| Dividend Yield | 6.86% |
3. AirAsia Group Bhd
AirAsia Group Berhad provides air transportation services primarily in Malaysia with a dividend yield of 6.45 %. The company operates scheduled passenger flights and chartered flights; and offers air cargo services. The company provides shared and outsourcing, and central depository services for its affiliates; financial and other related services.
The company total market cap is 9.424 B. At the end of 2018, it declared a special dividend of 40 sen a share as its net profit jumped 81.2% in the third quarter and recently on 27 Feb 2019 AirAsia declares its interim dividend 12 Cents.
AirAsia Group Bhd Financial Stats
| Number of Shares | 3.342 B |
| P/E Ratio | 4.66 |
| ROE | 32.57% |
| Dividend (Cent) | 64 |
| Dividend Yield | 6.45% |
4. Malayan Banking Bhd
Malayan Banking Bhd is a holding company with market cap 104.614 B, which engages in the provision of commercial banking and related financial services. The Company provides financial services such as insurance, asset management, stock broking, nominee services, venture capital, leasing, and Internet banking. Malayan Banking Berhad serves customers in South East Asia.
The company provides an impressive dividend yield of 6.02%. Malayan Banking Bhd beat expectations with a 9.1 percent rise in quarterly net profit in 2019. At present, Maybank has a long-term dividend policy to pay out 40-60% of its net profits to shareholders. Maybank has paid out RM36.6 billion in dividends to its existing shareholders over the last 10 years.
Malaysia Banking Bhd Financial Stats
| Number of Shares | 11.050 B |
| P/E Ratio | 12.91 |
| ROE | 10.77% |
| Dividend (Cent) | 55 |
| Dividend Yield | 6.02% |
5. Malayan Banking Bhd
The last stock but not the least Sime Darby Property Berhad provides property development and investment services. The Company offers parks, hotels, resorts, and golf and country club. Sime Darby Property serves the hospitality and leisure industries in Malaysia.
The company provide a dividend yield of 5.41%. It recently declared Interim single tier dividend of 1.0 sen per ordinary share in Sime Darby Property Berhad for the financial period ended 31 December 2018 which will entitlement on 29 March 2019.
Sime Darby Property Bhd Financial Stats
| Number of Shares | 6.801 B |
| P/E Ratio | 7.86 |
| ROE | 16.40% |
| Dividend (Cent) | 5 |
| Dividend Yield | 5.41% |
Dividend Yields plays a very important role to achieve financial target and investment return. All the companies provided above are the potential performer in Bursa Malaysia and they are expected to perform better in 2019 as well. There are plenty of companies available in Bursa Malaysia which pays a high dividend, you just need an eye for it. Use the above information for research purpose and invest according to financial target and risk tolerance.
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