A list of the best dividend stocks in Malaysia

Dividend investing is one of the most reliable paths to financial independence in Malaysia. Buy shares in good companies, collect dividends regularly, and reinvest to compound your wealth over time. I have been doing this for over a decade and this page is my most updated guide to the best dividend stocks in Malaysia for 2026.

The beauty of dividend investing in Malaysia is that dividends from Bursa Malaysia listed companies are tax-free in the hands of individual investors under Malaysia’s single-tier tax system. Your dividends land in your account, clean and untouched. No forms to fill, no tax to declare.

The Bursa Malaysia market average dividend yield currently sits at around 4.51% – one of the highest in the region, ahead of Singapore’s STI (~4%), Australia’s ASX200 (~4.2%) and well above the US S&P 500 (~1.4%). That makes Malaysia a genuinely attractive market for income investors.

Before we dive in, a quick word of caution. A high dividend yield is not always a good thing. Sometimes a yield is high because the share price has dropped significantly – which could be a red flag about the underlying business. Always ask: is this yield sustainable? Is the company profitable? Does it have a consistent track record of paying dividends? The best dividend stocks are not necessarily those with the highest yield, but those that can sustain and grow their dividends year after year.

With that said, let’s get into it.

Top 10 Best Dividend Stocks in Malaysia 2026

Here are my top 10 picks for 2026, selected based on a balance of yield, consistency, financial strength and long-term reliability — not just raw yield.

Stock	Dividend Yield
Maybank	~5.5%
RHB Bank	~5.2%
CIMB Bank	~4.7%
Sunway REIT	~6.6%
IGB REIT	~4.4%
Pavilion REIT	~6.1%
KLCC REIT	~5.1%
Public Bank	~3.8%
Petronas Gas	~4.0%
Matrix Concepts	~4.4%

Now let’s break these down by sector, with more detail on each.

Dividends of banks in Malaysia

The banking sector is the backbone of dividend investing in Malaysia. Consistent earnings, regulated capital positions and disciplined payout ratios make banks the most reliable dividend payers on Bursa. Most major Malaysian banks pay dividends twice a year and many offer Dividend Reinvestment Plans (DRPs) that allow you to reinvest your dividends into new shares at a discount.

Stock	Code	Approx. Yield
Maybank	1155	~5.5%
RHB Bank	1066	~5.2%
CIMB Group	1023	~4.7%
Public Bank	1295	~3.8%

Maybank (1155): ~5.5% dividend yield

Maybank is Malaysia’s largest bank and the number one dividend stock on Bursa Malaysia by most measures. It has a long and consistent history of generous payouts, with an annual dividend of RM0.63 per share and a current yield of around 5.5%. Dividends are paid twice a year and a DRP is available. For most Malaysian retail investors, Maybank is the cornerstone dividend stock – the one you buy first and hold forever. I personally hold Maybank in my Freedom Fund and it has been one of my most reliable income generators year after year.

RHB Bank (1066): ~5.2% dividend yield

RHB is arguably the most attractive bank on pure yield right now. At around 5.2%, it offers the highest yield among the major Malaysian banks and has been posting record dividends per share in recent years. RHB is well-capitalised with a strong Tier-1 capital ratio, which supports dividend sustainability going forward. It also holds a stake in Boost Bank, giving it exposure to Malaysia’s digital banking future. An often overlooked stock that deserves more attention from income investors.

CIMB Group (1023): ~4.7% dividend yield

CIMB delivered a strong FY2025 with net profit of RM8.03 billion. What sets CIMB apart is its commitment to capital returns – it became the first Malaysian company to announce a multi-year capital return programme of up to RM2 billion and declared a total dividend of 47.1 sen per share for FY2025. With a P/E below 10x and a yield of around 4.7%, CIMB remains one of the most efficient dividend payers among Malaysian banks. I recently added CIMB to my own portfolio in May 2026 at RM7.30 per share.

Public Bank (1295): ~3.8% dividend yield

Public Bank’s yield is lower than its peers mainly because the share price has risen significantly – a reflection of how highly regarded this bank is among investors. It posted another record net profit in FY2025 and maintains the best asset quality in the industry with a gross impaired loans ratio of just 0.53%. If you are looking for the safest, most conservatively run bank in Malaysia, Public Bank is it. The yield may be modest but the capital appreciation over the long run has been outstanding. I hold Public Bank in my Freedom Fund.

Dividends of REITs in Malaysia

REITs are my personal favourite category for dividend investing. They are legally required to distribute at least 90% of their taxable income to unitholders, which means yields are consistently higher than regular stocks. They also give you exposure to real estate without the hassle of being a landlord.

Important note for 2026: The tax treatment of REIT distributions has changed significantly. Effective YA 2026, REIT distributions are no longer subject to the old flat 10% withholding tax. Instead, they are now taxed at your personal marginal income tax rate of 0-30%. For lower income investors this is actually good news – you could be receiving REIT dividends completely tax-free. For higher earners above RM100,000 in chargeable income, you will pay more than before. Plan accordingly. You can read more about this change in my Complete Guide to REITs in Malaysia.

Stock	Code	Approx. Yield
Sentral REIT	SENTRAL	~8%
CapitaLand Malaysia Trust	CLMT	~7%
YTL Hospitality REIT	YTLREIT	~7%
Sunway REIT	SUNREIT	~6-7%
Pavilion REIT	PAVREIT	~6%
KLCC REIT	KLCC	~5%
Axis REIT	AXREIT	~5%
IGB REIT	IGBREIT	~4%

Sunway REIT (SUNREIT): ~6.6% dividend yield

Sunway REIT is one of my personal holdings and has been a consistent performer in my Freedom Fund for years. It owns a diversified portfolio of retail malls, hotels and offices across Malaysia, with Sunway Pyramid as its crown jewel. The yield of around 6.6% is attractive and distributions are paid quarterly. What I like most about Sunway REIT is the built-in diversification – your money is spread across retail, hospitality and commercial properties all in a single stock.

Pavilion REIT (PAVREIT): ~6.1% dividend yield

Pavilion REIT owns some of the most premium retail real estate in Malaysia, anchored by Pavilion Kuala Lumpur in the heart of the Golden Triangle. With a yield of around 6.1%, it is one of the better yielding blue-chip REITs on Bursa. Pavilion consistently maintains high occupancy rates and strong rental reversions, making it a reliable income generator quarter after quarter.

IGB REIT (IGBREIT): ~4.4% dividend yield

IGB REIT owns Mid Valley Megamall and The Gardens Mall – two of the most visited and highest grossing malls in Malaysia. The yield of around 4.4% is on the lower end for REITs but IGB REIT commands a premium valuation for good reason. Occupancy is consistently near 100% and the dividend has been growing strongly year on year – the first distribution of 2026 grew 32% compared to the same period last year. I hold IGB REIT and have no intention of selling.

KLCC REIT (KLCC): ~5.1% dividend yield

KLCC is the largest REIT in Malaysia by market cap at approximately RM13.6 billion. It owns the Petronas Twin Towers office space, Suria KLCC mall and several premium office buildings in the KLCC precinct. The yield of around 5.1% comes with extremely stable and predictable distributions, backed by long-term leases to Petronas and other blue-chip tenants. A very low-risk REIT that suits conservative income investors who prioritise capital preservation alongside income.

Sentral REIT (SENTRAL): ~7.6-8.7% dividend yield

The highest yielding REIT on this list. Sentral REIT owns a portfolio of 10 office buildings in Cyberjaya, KL and Penang, including buildings around KL Sentral – one of the busiest transport hubs in Malaysia. The high yield reflects the fact that office REITs trade at a discount due to concerns about office oversupply in KL. But for investors comfortable with this risk profile, the yield is compelling and the locations are strategic.

Utilities and Infrastructure

Utilities are the most defensive dividend stocks you can own. Earnings are predictable, regulated and largely insulated from economic cycles. If you want to sleep well at night while collecting dividends, utilities belong in your portfolio.

Stock	Code	Approx. Yield
Tenaga Nasional Berhad	TENAGA	~3.7%
Petronas Gas	PETGAS	~4.0%
Petronas Dagangan	PETDAG	~5.6%
Malakoff Corp	MALAKOF	~6.0%

Tenaga Nasional / TNB (TENAGA): ~3.7% dividend yield

TNB needs no introduction. It is Malaysia’s sole electricity provider and one of the most recognisable companies in the country. Every time someone switches on a light in Peninsular Malaysia, TNB benefits. The yield of around 3.7% is modest but extremely reliable, backed by a regulated tariff structure under the RP4 framework and a five-year dividend growth rate of 5.79%. TNB declared a total dividend of 53 sen per share for FY2025, the highest in five years. With Malaysia’s data centre boom driving electricity demand to record highs, TNB is well positioned for continued earnings growth and dividend increases in the years ahead.

Petronas Gas (PETGAS): ~4.0% dividend yield

Petronas Gas is involved in gas processing, transportation and LNG regasification across Malaysia. It is one of the few non-REIT stocks on Bursa to pay quarterly dividends, making it a great option for investors who want more frequent income. The yield of around 4.0% is modest but extremely reliable, backed by Petronas as its parent company and protected by long-term regulated contracts. Petronas Gas has paid a dividend every single year for the past 19 years — that kind of consistency is rare and valuable for income investors.

Petronas Dagangan (PETDAG): ~5.6% dividend yield

Petronas Dagangan is the retail and commercial arm of Petronas, operating the Petronas petrol station network across Malaysia. Most Malaysians fill up their tanks at a Petronas station without realising they are essentially investing in this company every time they do so. The yield of around 5.6% is attractive, paid quarterly, with a five-year dividend growth rate of 13.88%. Analysts have highlighted it as good value following a recent share price correction. A well-known, essential business with a reliable dividend track record.

Malakoff Corp (MALAKOF): ~6.0% dividend yield

Malakoff is Malaysia’s largest independent power producer, generating electricity under long-term Power Purchase Agreements with TNB. The predictable cash flows from these contracts support a consistent dividend of around 6.0%. It is not a growth stock but as a pure income play it ticks most of the boxes: regulated earnings, recurring cash flow and a reliable payout history. A good option for investors looking for higher yield within the defensive utilities space.

Consumer and Others

Stock	Code	Approx. Yield
Heineken Malaysia	HEIM	~6.3%
British American Tobacco	BAT	~9.5%
Bermaz Auto	BAUTO	~6.0%
Matrix Concepts	MATRIX	~4.4%
Sime Darby	SIME	~5.4%

Heineken Malaysia (HEIM): ~6.3% dividend yield

Heineken Malaysia is one of the most consistent dividend payers on Bursa outside of banks and REITs. Its strong brand portfolio: Heineken, Tiger and Guinness – gives it strong pricing power and stable earnings year after year. The 6.3% yield is well covered by earnings and the company has a long track record of paying generous dividends. Worth noting that this stock is not Shariah-compliant due to its involvement in alcohol.

British American Tobacco Malaysia (BAT): ~9.5% dividend yield

BAT offers the highest yield on this list at around 9.5% but this comes with significant caveats. The tobacco industry is in structural decline – volumes are falling every year as the illicit cigarette trade and vaping continue to eat into BAT’s market share. The high yield is partly a reflection of a depressed share price. This is a classic yield trap situation. If you invest in BAT, do so with your eyes open. It may be fine as a small position in a diversified income portfolio but I would not make it a core holding.

Matrix Concepts (MATRIX): ~4.4% dividend yield

Matrix Concepts is a property developer focused on affordable landed housing in Negeri Sembilan, primarily in Bandar Sri Sendayan. It is a personal holding of mine and has been one of the most consistent dividend payers among Malaysian property developers. The 4.4% yield is supported by strong sales, a healthy cash position and a management team that has consistently demonstrated commitment to shareholder returns over the years.

Sime Darby (SIME): ~5.4% dividend yield

Sime Darby the industrial and auto conglomerate – not to be confused with Sime Darby Plantation or SD Guthrie – offers a 5.4% yield backed by diversified earnings across heavy equipment, BMW and Land Rover dealerships, and industrial operations across Asia Pacific. A solid mid-cap dividend stock that often gets overlooked by investors chasing higher profile names.

My Personal Portfolio and its Dividends from 2026

REITs and dividend stocks make up the core of my Freedom Fund. The above is a full list of what I hold as of June 2026. Stocks in my holdings worth taking note of:

• Maybank (1155) – Malaysia’s largest bank and one of my most reliable dividend payer
• Public Bank (1295) – best asset quality in the industry, a long-term compounder
• CIMB (1023) – newly added in May 2026 at RM7.30 per share
• IGB REIT (IGBREIT) – Mid Valley and The Gardens Mall, growing dividends
• Sunway REIT (SUNREIT) – Owner and operator of Sunway Pyramid and a diversified property portfolio
• Matrix Concepts (MATRIX) – affordable housing developer – consistent dividends every quarter

You can track my full portfolio, monthly dividend updates and running total for 2026 here.

Do note that the yield I’ve given above is based on my purchase price. This is how I keep track so I can easily calculate if dividends are increasing y-o-y. These have given me stellar performances year in and year out, and their dividends have increased almost every year.

Key Factors to Consider When Choosing Dividend Stocks

Selecting the best dividend stocks requires a strategic approach. One important factor to evaluate is the dividend yield, which reflects the return on your investment relative to the stock price. However, a higher yield doesn’t always mean a better investment – ensure the company has a sustainable payout ratio. Generally, a payout ratio below 70% is considered healthy, as it indicates the company retains enough earnings for growth while rewarding shareholders.

You can often find a company paying high yields ie. 10% p.a. but you’ll notice immediately it is due to a sharp drop in share prices. These are false dividend yields and you should be very careful in analysing them. A company that isn’t doing well will never be able to sustain the same dividend payments in the future.

Dividend history is another crucial aspect. Companies with a track record of consistent or growing dividends demonstrate financial stability and shareholder commitment. Look for those labelled as dividend aristocrats – stocks that have increased dividends annually for a significant period.

Additionally, pay attention to the sector and market conditions. Defensive sectors like utilities and consumer staples often provide stable dividends even during economic downturns.

Finally, don’t overlook the importance of growth potential. While high-yield stocks may be tempting, those with modest yields but strong growth prospects could provide better long-term returns.

By focusing on these factors, you can build a robust portfolio that balances income with capital appreciation. Regularly reassessing your holdings ensures alignment with your financial goals and market dynamics.

Frequently asked questions (FAQs) on dividend stocks in Malaysia

What is a dividend stock?
A dividend stock is a share in a company that regularly distributes a portion of its profits to shareholders in the form of cash payments. In Malaysia, most dividend stocks pay out twice a year, though REITs typically pay quarterly.

Are dividends taxed in Malaysia?
Dividends from Malaysian listed companies are tax-free in the hands of individual investors under Malaysia’s single-tier tax system. The tax is paid at the corporate level and the dividend you receive requires no further declaration. However, REIT distributions are different – effective YA 2026, they are taxed at your personal marginal income tax rate of 0-30%. Read more about the REIT tax change here.

What is a good dividend yield in Malaysia?
The Bursa Malaysia market average is around 4.51%. Anything above 5% is considered high yield for a quality stock. Yields above 8-9% should be approached with caution – always check whether the high yield is backed by strong earnings or is simply a result of a falling share price.

How do I start investing in dividend stocks in Malaysia?
You need a CDS account and a brokerage account with any licensed broker on Bursa Malaysia. Check out my Malaysia Stock Brokers Comparison to find the right broker for your needs.

What is a Dividend Reinvestment Plan (DRP)?
A DRP allows you to reinvest your cash dividends into new shares of the same company, usually at a discount to the market price. Major Malaysian banks like Maybank, Public Bank and CIMB offer DRPs. It is one of the most powerful tools for compounding your dividend income over the long term. I have written about how DRPs work in Malaysia here.

What is the difference between dividend yield and dividend per share?
Dividend per share (DPS) is the absolute amount the company pays you per share. Dividend yield is DPS divided by the current share price, expressed as a percentage. Yield changes as the share price moves even if DPS stays the same — which is why a rising share price can compress the yield of an otherwise great dividend stock.

Are REITs good dividend investments in Malaysia?
Yes – REITs are one of the best vehicles for dividend income in Malaysia. They are legally required to distribute at least 90% of taxable income, which means yields are consistently higher than regular stocks. Do take note of the new 2026 tax treatment on REIT distributions. Read my Complete Guide to REITs in Malaysia for more.

How often are dividends paid in Malaysia?
Most Malaysian companies pay dividends twice a year – an interim dividend mid-year and a final dividend after the financial year ends. REITs typically pay quarterly distributions. A handful of companies like Petronas Gas also pay quarterly dividends.

What is the difference between a REIT and a regular dividend stock?
A REIT is a company that specifically owns and manages income-producing real estate and is required by law to distribute at least 90% of its income. A regular dividend stock is any listed company that chooses to pay dividends – there is no legal minimum. REITs tend to offer higher and more predictable yields but are subject to different tax treatment from YA 2026 onwards.

My monthly dividend updates

In addition to my Malaysia portfolio, I’ve also started investing in US stocks and my US portfolio can be found here.

A list of my present and past dividend income and updates can be found below:

• Dividend Income Update 2026
• Dividend Income Update 2025
• Dividend Income Update 2024
• Dividend Income Update 2023
• Dividend Income Update 2022
• Dividend Income Update 2021
• Dividend Income Update 2020
• Dividend Income Update 2019
• Dividend Income Update 2018
• Dividend Income Update 2017
• Dividend Income Update 2016
• Dividend Income Update 2015
• Dividend Income Update 2014
• Where it all started – April 2014

My Investing Method

If you’re curious as to who am I, how and why I invest, you can read more about me hERE.

As always, my goal has been to achieve a passive income of approximately RM36K per annum through dividends.

With that goal in mind, I have been holding and adding stocks that continue to increase their dividends every year. Most of the stocks in my portfolio reflect that – REITs, Maybank, Nestle etc all are there to help achieve that passive income.

That being said, I am always on the lookout for growth stocks. And I’m fine with a growing company not being able to pay dividends during the growth stage.

As of 2020, my plan is to continue looking for the best dividend stocks in Malaysia and add to my portfolio when the price is right. At the same time, I will be looking towards the US for bigger, better companies to invest in.

I am glad to have finally found a way to purchase US stocks with minimal fees and I’ve since switched brokers. A guide to investing in the US and other foreign stocks can be found hERE.

I’ve also curated a list of the top 20 most valuable companies in Malaysia by market cap.

Personally, I use MooMoo Malaysia and Rakuten Trade to invest locally. I will be using their system as an example throughout my posts.

For the next article of the Investing Series, check out article 006 – Dividend and Growth Investing and What are Dividends?

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