Dividend investing is my preferred way of investing. The premise is simple – buying businesses that generate consistent cash flow year after year at below the fair value of the business. This article will list out what I think are the best dividend stocks in Malaysia.
There are not that many good dividend stocks in Malaysia that can pay consistent dividends. Most of the companies I’ve filtered through in Bursa Malaysia have very inconsistent track record of generating enough cash and rewarding shareholders over the years.
The list below includes stocks that have proven track record of the following criteria:
- Consistent growth in revenue and earnings over the past 10 years
- Consistent payment of dividends over the years
- Strong cash generating ability to pay for dividends
If you’re new to dividend investing, I won’t explain the basic stuff, check out this guide by Marcus as it’s quite comprehensive.
Best Dividend Stocks Malaysia – Updated 2020
This list is by no means exhaustive, it reflects my personal view and what I intend to accumulate or have already been included into my portfolio. Standard disclaimer applies. Here’s my list of best dividend stocks Malaysia:
- Aeon Credit Service
- Allianz Malaysia Berhad
- BIMB Holdings
- Bursa Malaysia
- Elk-Desa Resources
- Hong Leong Industries
- Lii Hen Industries
- Lingkaran Trans Kota Holdings
- LPI Capital
- Public Bank
- Petronas Gas
- RHB Bank
- Syarikat Takaful Malaysia
When to Buy These Dividend Stocks
The above list of best dividend stocks in Malaysia are the ones remaining after screening through KLSE’s universe of stocks, meaning all those penny stocks or high-growth stocks are not included. Even though they are of above average quality, you still need to check whether the stocks currently have good price.
Knowing when to buy is as important as what to buy. For that reason, I have my own investing philosophy called Perpetual Income Machine that details my thought process and entry rules for investing in dividend stocks.