Top Dividend Stocks in Malaysia 2025

Looking for stable returns in an uncertain market? Dividend stocks in Malaysia are making a strong comeback in 2025. With the FBM KLCI down 2.4% YoY (as of 16th May 2025), income-seeking investors are turning to high-yield stocks as a defensive strategy—and it’s paying off. 

From banks like Maybank and CIMB offering 6%+ yields, to REITs and consumer staples delivering double-digit returns, some of the best Malaysian dividend stocks now offer yields far above the market average of 4.43%. 

More than just passive income, these payouts reflect strong fundamentals and disciplined capital allocation across sectors—making them a powerful way to grow wealth even as volatility lingers.

Top large-cap dividend stocks (Market cap > RM10 billion)

Source: Trading View (as of 16th May 2025)

Top large-cap dividend stocks (Market cap RM1 - RM10 billion)

Source: Trading View (as of 16th May 2025)

Sector analysis of key dividend stocks

Industries vary in capital intensity, regulatory risk, and growth outlook—each affecting how sustainable and consistent dividend payouts can be. Let’s look at each sector closely:

🏦 Banking and financial services

Malaysia’s banking sector has long been a dividend mainstay. Most major banks are offering yields well above the Bursa market average of 4.43%, with payout ratios between 50%–70%. These yields are not just high—they’re backed by strong earnings and resilient capital positions.

Key stocks to watch:

• RHB Bank Bhd – At a yield of 6.42%, RHB continues to impress with record DPS in recent years. Its stake in Boost Bank offers exposure to Malaysia’s digital banking future, while its conservative payout strategy ensures sustainability.
• CIMB Group Holdings Bhd – With a 5.57% yield and a P/E below 10x, CIMB remains one of the most efficient dividend payers among the top three banks. Analysts project its 3-year payout ratio to stay near 57%, backed by consistent earnings.
• Malayan Banking Bhd (Maybank) – Maybank’s 6.02% dividend yield is supported by a long history of strong payouts. Its Dividend Reinvestment Plan (DRP) allows shareholders to take returns as shares at a discount—further boosting compounding potential.
• Public Bank Bhd – Known for stability, Public Bank offers a 4.67% yield. Over the last decade, it has grown its DPS at an average of 6.1% annually, appealing to conservative, income-focused investors.
• BIMB Bank Islam – With a 6.22% yield, BIMB offers both yield and Shariah-compliant exposure—making it popular among Islamic income investors.
• LPI Capital Bhd – This insurance-focused stock yields 5.42%, driven by steady underwriting profits and consistent dividend policies.

📡 Communications

The telco sector has regained attention in 2025. Telcos are offering consistent dividends amid stable cash flow, with some consolidation in the sector enhancing margins. While capital expenditure for 5G remains a drag, leading players are prioritising shareholder returns.

Key stocks to watch:

• Maxis Bhd – Yielding 4.52%, Maxis balances strong network leadership with healthy distributions. Its yield is supported by a moderate payout ratio and high market penetration.
• Telekom Malaysia (TM) – TM offers a 3.63% yield, with upside driven by its role in Malaysia’s digital infrastructure roadmap. Analysts see potential for moderate dividend growth as capex stabilises.

🏬 Consumer products & services

Consumer names are making a comeback post-pandemic, especially those with resilient earnings and strong brands. While margins are under pressure due to inflation, market leaders continue to generate strong free cash flow for dividends.

Key stocks to watch:

• Bermaz Auto Bhd – Among the highest-yielding mid-cap stocks with a yield of 11.4%. Its healthy balance sheet and strong Mazda sales in Malaysia underpin its dividend policy.
• British American Tobacco (Malaysia) – Yields 8.73%, but investors should be cautious of regulatory risks and market decline for traditional tobacco. Despite that, BAT continues to return most of its earnings via dividends.
• Genting Malaysia Bhd – With a 5.62% yield, Genting’s rebound in hospitality and gaming supports a growing payout. Its consistent dividend restoration post-COVID has boosted investor confidence.
• Sime Darby Bhd – Yielding 6.02%, Sime’s diversified exposure to industrial and auto sectors across Asia continues to support generous shareholder returns.
• Heineken Malaysia Bhd – With a 5.46% yield, Heineken’s pricing power and brand strength help maintain stable payouts despite rising costs.

🏢 Property and REITs

Dividend stocks in property and REITs are once again in favour, particularly for investors seeking stable cash flow. Despite macroeconomic headwinds, several trusts and developers are delivering yields above 6%.

Key stocks to watch:

• UOA Development Bhd – Topping the charts with a 16.76% yield, UOA’s strong rental income and cash reserves support high payout ratios.
• CapitaLand Malaysia Trust (CLMT) – Offering 7.27%, CLMT is anchored by mall properties with recovering footfall and occupancy.
• YTL Hospitality REIT – Delivers 6.60% as tourism recovery and global travel trends lift hotel segment income.
• Sentral REIT – With 8.42% yield and stable office tenancy, Sentral is one of the highest-yielding REITs on Bursa.
• Matrix Concepts Holdings Bhd – With 4.66% yield, Matrix’s focus on affordable housing continues to generate strong cash flows and consistent dividends.

🌱 Plantation

The plantation sector is benefiting from strong palm oil prices and efficient cost structures. While cyclical, several players maintain generous payouts supported by strong net cash positions.

Key stocks to watch:

• Ta Ann Holdings Bhd – Offers 8.82% yield, significantly above its 10-year average of ~5%. Its integrated upstream business and timber segment boost dividend visibility.
• Kim Loong Resources Bhd – Yielding 4.41%, with an impressive dividend payout of 85–99% of net profit for the past four years. RM488 million in net cash backs its stability.
• Sarawak Oil Palms Bhd – Yielding 5.45%, SOPB has benefitted from higher average selling prices and efficient production.
• United Plantations Bhd – A large-cap name with a 5.18% yield, underpinned by sustainable practices and upstream margins.

Why invest in large-cap dividend stocks in Malaysia

Dividend investing has always appealed to investors looking for steady returns and lower volatility. With the FBM KLCI still lagging behind historical highs, large-cap dividend stocks have become even more relevant—offering not just income, but also relative stability and capital resilience.

Consistent income, regardless of market cycles

Large-cap companies like Maybank, CIMB, and RHB Bank have long-standing dividend policies that prioritise shareholder payouts—even in uncertain times. 

These blue-chip names generate consistent cash flows from diversified businesses, making them more likely to continue paying dividends regardless of short-term market movements.

In Malaysia, dividends have contributed approximately 46% of total equity returns in Asia over the past decade. That makes dividend income not just supplementary—but critical to overall portfolio performance.

For retail investors, this means a regular stream of income (typically semi-annual or annual) without needing to sell shares—ideal for retirement portfolios or long-term compounding.

Reinvestment unlocks compounding gains

Many large-cap Malaysian companies, especially banks, offer Dividend Reinvestment Plans (DRPs). This allows shareholders to reinvest their dividends into new shares, often at a discount. Over time, these reinvested dividends generate their own returns—creating a compounding loop.

For example, Maybank’s DRP has enabled investors to accumulate more shares over time without additional capital outlay, accelerating portfolio growth while keeping cash invested.

Built-in inflation protection

In an environment where inflation remains sticky, dividend-paying companies—especially those with pricing power like utilities, telcos, and banks—can pass on cost increases to customers. This leads to stronger earnings, which in turn support higher dividends.

In fact, Asian dividends have grown by over 300% since 2001, outpacing inflation and preserving purchasing power for income investors.

Stability during downturns

With the FBM KLCI down 9.69% YTD as of April 2025, investors are looking for downside protection. Large-cap dividend stocks tend to hold up better during market drawdowns, acting as a buffer in diversified portfolios.

Historically, stocks that consistently pay dividends have lower volatility and tend to outperform non-dividend payers in bear markets. This is particularly true for sectors like finance, utilities, and consumer staples.

A signal of financial strength

Consistent dividends are more than just cash returns—they’re a signal. Companies that continue to pay or raise dividends during tough times are telling investors: "We have stable cash flow, strong balance sheets, and confidence in future earnings."

For example, banks like CIMB and Public Bank have maintained dividend payouts above 4–5% for years, even during crises. That level of consistency builds trust and long-term shareholder value.

A strategic anchor for any Malaysian portfolio

In a landscape filled with volatility, high-growth speculation, and global rate uncertainty, large-cap dividend stocks in Malaysia offer what many investors crave: visibility, resilience, and real cash returns.

This isn’t just a strategy used by retail investors—it’s the same income-focused approach taken by Malaysia’s largest institutional investor, the Employees Provident Fund (EPF). In Q3 2024, EPF recorded RM57.57 billion in gross investment income, with equities contributing to 44% of total investment assets.

EPF’s consistent preference for dividend-paying stocks reflects its long-term objective: sustainable, compounding income to meet retirement obligations. By emulating this approach, individual investors can anchor their own portfolios around the same principles that drive Malaysia’s most trusted retirement fund.

Whether you're investing for retirement, building income, or just seeking portfolio stability, large-cap dividend stocks remain a proven foundation—resilient in downturns, rewarding in upswings, and aligned with the investment principles of Malaysia’s most respected institution.

Looking for steady returns? Consider StashAway Simple™

Not all income needs to come from stocks. If you're looking for a low-risk, hassle-free way to earn steady returns on your idle cash, StashAway Simple™ offers a strong alternative or complement to dividend investing. 

StashAway Simple™ is a cash management solution that invests in money market funds — offering a projected return of 3.6% p.a., without any lock-in period or minimum deposit.

Why it works well with dividend investing:

• Diversifies your income sources beyond equity market volatility
• Keeps your uninvested cash productive while you wait for market opportunities
• Ideal for risk-averse investors or as a parking place before entering stocks
• No hidden fees, no sales charges, and you can withdraw anytime

For investors who want both reliable cash flow and capital preservation, pairing dividend stocks with a tool like StashAway Simple™ gives you the flexibility to balance risk and yield—all in one portfolio.

Investment considerations for dividend stocks

Attractive dividend yields often grab attention—but a high yield alone doesn’t guarantee long-term success. For investors building a reliable income-generating portfolio with dividend stocks, especially large-cap Malaysian names, several key factors should be evaluated.

Dividend growth potential

A high yield today doesn’t mean sustainable income tomorrow. Investors should assess whether a company has the capacity to grow its dividends over time, which typically depends on earnings growth, cash flow strength, and payout discipline.

Malayan Banking Bhd (Maybank) is a prime example—its consistent track record of dividend increases over the past decade has not only protected purchasing power but also contributed to long-term total returns. 

The ability to grow dividends over time makes a stock more valuable in an inflationary environment.

Payout ratio and sustainability

The payout ratio—the percentage of earnings distributed as dividends—is a critical metric. A company with a very high payout ratio (above 80%) may struggle to maintain its dividend during earnings downturns, while a moderate payout ratio (around 50%) suggests stability.

• CIMB Group Holdings maintains a payout ratio of approximately 55%, supporting its 5.57% dividend yield while leaving room for reinvestment.
• Kim Loong Resources Bhd, although smaller in size, has paid out 90% of its net profit as dividends in 2024 might not be able to sustain the high dividend payout.

Balance sheet strength and cash flow visibility

A strong balance sheet allows a company to sustain dividends even during economic slowdowns. Look for businesses with low debt, healthy operating cash flows, and adequate liquidity reserves.

Bermaz Auto Bhd, for instance, offers an 11.4% yield and supports it with over RM400 million in cash. Its solid balance sheet and lean operating model ensure dividend reliability despite sector headwinds.

Sector dynamics and competitive position

Not all sectors support sustainable dividends equally. Industries with cyclical earnings (e.g., plantations or energy) may offer higher yields but with more variability. In contrast, banks, telcos, and utilities tend to have stable earnings and recurring cash flow, making them ideal for long-term dividend portfolios.

• RHB Bank and Maybank operate in a competitive but regulated banking environment, benefiting from diverse revenue streams and digital expansion strategies.
• Gas Malaysia Bhd, in the utility space, yields nearly 5.9% while benefiting from predictable tariff structures and essential service demand.

Don’t chase yield blindly

A double-digit yield could be a red flag if it's driven by falling share prices or declining earnings. Instead of focusing solely on the highest yield, investors should prioritise quality of earnings, dividend track record, and future growth potential.

Bottom line: Dividend investing isn't just about yield—it's about consistency, sustainability, and smart portfolio construction. Evaluate fundamentals, understand sector headwinds, and aim for high-quality large-cap names that align with your income and capital preservation goals.

Checklist: Key things to look out for before investing in dividend stocks

Use this list to evaluate whether a dividend stock—especially a large-cap—is worth holding in your income portfolio:

Why dividend investing still matters in 2025

Dividend stocks—especially large-cap names on Bursa Malaysia—remain a reliable strategy for generating passive income and managing portfolio risk. In 2025, with inflation still a concern and market volatility lingering, high-quality dividend stocks offer a rare combination of stability, income, and long-term growth potential.

Malaysia’s top large-cap dividend payers like Maybank, CIMB, RHB, and Sime Darby continue to deliver consistent yields above 4%–6%, backed by solid fundamentals and strong cash flows. Mid-cap names and selected REITs also offer attractive opportunities, particularly in the plantation, utilities, and property sectors.

Whether you're a retiree looking for income or a long-term investor seeking portfolio resilience, dividend stocks—especially those backed by strong balance sheets and earnings visibility—should remain a core part of any Malaysian investment strategy.