10 other Malaysian dividend stocks you can consider
KUCHING (March 27): Following the article “10 Malaysian Dividend Stocks to Generate Recurring Income” which was published earlier, here are 10 other attractive top dividend payers that have a good track record of dividend yield and expect to thrive in the future.
Generally, dividend is the payment of a portion of the company’s profits to eligible shareholders or mutual fund holders. It is seen as an act of reward from its shareholders who have invested in the company.
The payout ratio is determined by the Board of Directors based on various financial and economic factors. It is also one of the key factors that investors consider when making an investment decision.
Companies that have a high dividend yield reflect the sound financial condition of the company and may represent an undervalued or undervalued nature of the company relative to its stock price.
Similarly, a low dividend yield can be considered that the stock is overvalued or overvalued. A high dividend yield is attractive to investors because it generates secondary income for them other than the capital gain from stock price appreciation over time.
The sector with the best dividend yield for Malaysia in 2021 is utilities, real estate, consumer, communication, industrial and financial services. Compared to the previous top 10 list, this list takes precedence over the real estate sector compared to the previous top 10 list which focuses on financial services and consumer products.
Since the Malaysian government announced the reopening of the national border on April 1, we can expect the country’s economic level to start approaching pre-pandemic levels.
The real estate sector will be a major driver of economic rejuvenation due to higher take-up rates for offices and shopping malls, so we expect higher revenues and possibly higher dividend yields for 2022.
As of February 2022, 410 companies out of 784 companies listed on the main market of the Malaysian Stock Exchange are paying dividends. However, not all are considered good dividend-paying stocks. It is important for investors to know how to assess whether it is a good stock paying dividends.
1) Malakoff Corp Bhd (forward dividend yield: 9.39%)
Malakoff is an investment holding company. Together with the subsidiaries, the company acts as an independent producer of electricity and water in Asia. Its main business activities include the provision of power generation, water desalination and operation and maintenance services.
In addition, the group also provides project management services for internal and external projects. It derives most of its revenue from electricity production and distribution activities. The group operates in Malaysia, Australia, Indonesia and the Middle East, with major revenues coming from Malaysia.
2) Sentral REIT (forward dividend yield: 8.75%)
Sentral REIT, formerly MRCB-Quill REIT, is a real estate investment trust. The Company is engaged in acquiring investment in commercial properties, including office, retail, parking and other commercial buildings.
Its properties are in Cyberjaya, Petaling Jaya, Kuala Lumpur and Penang. MRCB-Quill’s tenant mix includes Oil & Gas, Retail, Government Related Offices, Logistics, Banking, Insurance, IT/Electronics, Automotive , real estate/construction, education, services, manufacturing and fast moving consumer goods.
3) Astro Malaysia Holdings Bhd (forward dividend yield: 8.59%)
Astro Malaysia is an entertainment holding company operating in the diversified media industry. The Company’s segments include Television, Radio, Home Shopping and Others.
The Television segment provides content, creation and media aggregation. Additionally, it provides magazine publishing and distribution. The radio segment provides broadcasting services to customers. The company generates the majority of its revenue in Malaysia.
4) KLCC Properties Holdings Bhd (forward dividend yield: 7.85%)
KLCC Property Holdings Bhd is a property investment company engaged in the ownership, management and redevelopment of office and retail space in Malaysia. Its real estate portfolio includes offices, shops and hotels. Through its subsidiaries, it also provides facility management services and parking management services.
Its segments are real estate investment providing office rental of office space and other related business; real estate investment providing retail rental of commercial space and other related activities; hotel operations offering the rental of hotel rooms, the sale of food and beverages and other related activities; and Management Services providing facility management, parking lot operation, real estate investment trust management and general management services.
5) AmanahRaya REIT (forward dividend yield: 7.34%)
AmanahRaya REIT owns a diversified portfolio of real estate and real estate-related assets, including hotels, industrial, educational and office buildings. Its objective is to achieve an attractive level of rental income return and long-term capital growth. The company operates only in Malaysia.
6) MISC Bhd (forward dividend yield: 6.58%)
MISC is a marine logistics company domiciled in Malaysia. The Company is organized into five segments: Oil and Product Shipping, LNG Asset Solutions, Offshore Business, Marine and Heavy Engineering, and Others.
The petroleum and product transportation segment, which contributes the largest portion of revenue, transports crude oil, petroleum products and chemicals by sea. LNG Asset Solutions, the second largest segment, transports liquefied natural gas through its fleet of transport vessels and operates floating storage units.
The Offshore segment operates and maintains offshore floating terminals. The Marine and Heavy Engineering segment provides offshore and onshore construction and maintenance services. The company derives about half of its revenue from the country.
7) Al-Aqar Healthcare REIT (forward dividend yield: 6.37%)
Al-Aqar Healthcare REIT is engaged in investing in syariah-compliant properties with the primary objective of providing unitholders with a distribution and the potential for long-term sustainable growth of that distribution and capital appreciation. . The company operates in Malaysia and Australia. The Malaysian geographic segment generates maximum revenue for the company.
8) Panasonic Manufacturing Malaysia Bhd (forward dividend yield: 5.77%)
Panasonic Manufacturing Malaysia is engaged in the manufacture and sale of home appliances and related components. The business activity of the group is divided into two segments, namely home appliances and fans.
It generates maximum revenue from the fan merchandise segment. The group’s product portfolio includes electric fan, ceiling fan, fan, home shower, vacuum cleaner, rice cooker, slow cooker, blender, juicer, electric iron, dryer -crockery and a bidet.
Geographically, it operates in the region of Malaysia, Japan, Asia (excluding Malaysia and Japan), North America, Europe and the Middle East, of which the Malaysia region accounts for a portion important in turnover.
9) Petronas Gas Bhd (forward dividend yield: 5.12%)
Petronas Gas is a Malaysian gas infrastructure and utility company in which Malaysia’s nationalized oil company, Petroas, holds a majority stake. Petronas Gas segments its core businesses into gas processing, gas transportation, utilities and regasification businesses.
While each of these contributes significantly to the company’s total revenue, its gas processing and transportation units combine to generate the majority. In gas processing, Petronas Gas receives processing fees under multi-year contracts by processing natural gas delivered offshore for its parent company, Petronas.
The Gas Transmission business encompasses the transmission of offshore natural gas through pipelines to customers in Malaysia and Singapore under multi-year agreements with Petronas.
10) Malaysia Building Society Bhd (forward dividend yield: 5.08%)
Malaysia Building Society is a Malaysia-based company. The Company operates through four major segments: a financing business, which provides loans against the security of freehold and leasehold properties and offers retail financing and related services, a real estate development business, which develops properties residential and commercial businesses, a business that leases real estate, that leases office buildings, and a hotel operating business that leases hotel rooms, in addition to retail and other related businesses.
The company is also active in project management and investment holding. It derives the majority of its total revenue from the finance business and conducts business solely in Malaysia.