High Dividend Stocks in Malaysia 2026 To Earn Big Income (July)

Want your money to pay you while you sleep? In Malaysia, dividend stocks are one of the most reliable ways to build that kind of passive income.

The FBM KLCI carries an average dividend yield of roughly 4.5% in 2026 — comfortably above the S&P 500 (~1.4%) and even ahead of Singapore’s Straits Times Index. With Bank Negara Malaysia holding the Overnight Policy Rate (OPR) at 2.75% since July 2025, fixed deposits are stuck near 2.6–2.9%, so a quality stock paying 5–7% a year in dividends looks increasingly attractive to income seekers.

Think of a dividend as your slice of a company’s profits, paid in cash straight to your brokerage account — usually once or twice a year on Bursa Malaysia. Reinvest those payments and compounding does the heavy lifting over time.

This guide covers the top high-dividend stocks in Malaysia for 2026, how to tell a healthy yield from a dividend trap, the new 2% dividend tax you need to know about, and exactly how to start. Every yield below was checked in July 2026 — but because yields move with share price, always confirm against the company’s latest financials before you buy.

Top 10 High Dividend Stocks in Malaysia for 2026

These ten names combine above-market yields with the earnings strength to keep paying. They lean toward banks, real estate investment trusts (REITs) and utilities — the mature, cash-generative sectors that have long anchored Malaysian income portfolios. Yields are approximate and verified as of July 2026.

1. Malayan Banking Berhad (Maybank – 1155)

Maybank is the biggest bank in Malaysia by assets and the heaviest weight in the FBM KLCI. Its scale, roughly 50–60% payout ratio and semi-annual dividend (topped up by an optional dividend-reinvestment plan) make it the default core holding for most Malaysian income portfolios. Yield sits around 5.6%.

2. CIMB Group Holdings (1023)

CIMB is Malaysia’s second-largest bank with a genuine ASEAN footprint across Indonesia, Thailand and Singapore. A multi-year push to lift return on equity and tighten costs has supported a growing dividend, yielding roughly 5.5% and paid twice a year.

3. RHB Bank (1066)

RHB consistently ranks among the highest-yielding of the big banks, helped by one of the sector’s strongest CET1 capital positions — a cushion that supports generous payouts. Expect a yield around 5.2%.

4. Public Bank (1295)

Public Bank is the definition of defensive: the lowest gross-impaired-loan ratio among local banks and a payout record that barely flinched through past downturns. The yield of about 4.9% is slightly below the others here, but the trade-off is unusually low risk.

5. Petronas Dagangan (5681)

The retail and commercial fuel arm of Petronas runs the familiar PETRONAS stations nationwide. It is cash-rich, carries little debt and pays a quarterly dividend under a policy of at least 50% of profit — often more. Yield is around 5.7%.

6. Gas Malaysia (5209)

Gas Malaysia distributes natural gas to industrial and commercial users under a regulated framework, which makes its margins — and dividends — unusually predictable. At roughly 7.2%, it carries the highest yield on this list, though earnings are sensitive to industrial gas demand.

7. Sime Darby (4197)

Sime Darby is a diversified conglomerate best known as one of the region’s largest motor (car dealership) groups, alongside industrial equipment (Caterpillar) and logistics. That spread of earnings underpins a yield of about 5.5%. Note this is the industrials group, separate from Sime Darby Property and Sime Darby Plantation.

8. Pavilion REIT (5212)

Pavilion REIT owns prime retail assets including Pavilion Kuala Lumpur and Pavilion Bukit Jalil. Malaysian REITs must distribute at least 90% of their income to keep their tax-exempt status, which is why quality retail REITs like this one yield around 6.0% — among the most dependable income on Bursa.

9. Sunway REIT (5176)

Sunway REIT is the largest diversified REIT in Malaysia, spanning Sunway Pyramid mall, hotels, offices and industrial assets. That diversification cushions any single-sector weakness and supports a yield of roughly 5.8%.

10. IGB REIT (5227)

IGB REIT owns two of Malaysia’s highest-traffic malls — Mid Valley Megamall and The Gardens Mall. Near-full occupancy and steady footfall make its roughly 5.0% distribution one of the most stable retail-REIT yields in the market. For a wider comparison, see our guide to the best REITs in Malaysia.

Also on the Radar

A few more names worth watching, each with a caveat:

• Bank Islam Malaysia (5258) – the country’s flagship Shariah-compliant bank, yielding around 5.6%. A strong pick for investors who want halal income. (Note: older listings quoting an 11%+ yield are inaccurate — the real figure is in the mid-5% range.)
• Bermaz Auto (5248) – the Mazda distributor screens with a very high headline yield (trailing figures above 10%), but that partly reflects a depressed share price after weaker vehicle sales. Treat it as a possible dividend trap: the forward yield closer to ~6% is more realistic, and the payout depends on car sales recovering.
• Telekom Malaysia (4863) – yields around 5% with steady broadband cash flow.
• MISC (3816) – the shipping and offshore energy group yields roughly 4.7% with long-term charter income.
• Tenaga Nasional (5347) – the national power utility yields a more modest ~3.8% today, but offers rock-solid, regulated earnings and exposure to the data-centre electricity boom.

For lower-volatility blue chips built around dividends, also compare our dedicated list of blue-chip dividend stocks in Malaysia.

How to Choose High-Dividend Stocks in Malaysia

A big yield alone tells you almost nothing. Use this five-point checklist to separate durable income from a trap:

Step 1 – Check the payout ratio, not just the yield

The payout ratio is the share of earnings paid out as dividends. A sustainable range is usually 40–70% for most companies (REITs are the exception — they must pay 90%+). A payout ratio above 100% means the company is paying more than it earns, which rarely lasts.

Step 2 – Look for a consistent track record

Has the company paid — and ideally grown — its dividend through good years and bad? A decade of uninterrupted payouts is a far better signal than one unusually high year.

Step 3 – Stress-test the balance sheet

High debt is the enemy of dividends. If interest payments eat into cash flow, the dividend is first in line to be cut. Favour companies with manageable gearing and healthy free cash flow.

Step 4 – Understand why the yield is high

A yield can spike for two very different reasons: a genuinely generous payout, or a collapsing share price. If the price has fallen sharply, ask what the market knows before you buy the “bargain.”

Step 5 – Diversify across sectors

Don’t stack a portfolio entirely with banks. Spread income across banking, REITs, utilities and consumer names so a shock to one sector doesn’t sink your whole payout. If you’re just starting, our guide to investing with little money pairs well with a dividend strategy.

Understanding High-Dividend Stocks

In Malaysia, “high dividend” isn’t a formal definition. Because the market average yield sits around 4.5%, stocks yielding roughly 5% or more are generally considered high-dividend plays. Two metrics matter most:

Dividend Yield

This expresses the annual dividend as a percentage of the current share price: (Annual Dividend per Share ÷ Share Price) × 100%. If a stock trades at RM10 and pays RM0.50 a year, the yield is 5%. Because the price is the denominator, yield rises when the price falls — which is exactly why a high number needs context.

Dividend Payout Ratio & Growth

The payout ratio (dividends ÷ earnings) shows how much room a company has to keep paying. A lower ratio leaves a buffer; a very high one leaves none. Alongside it, a steady dividend growth rate signals management’s confidence and financial health. Past payouts don’t guarantee future ones — use the history to judge capability, not as a promise.

Common Mistakes & Dividend Traps to Avoid

Income investing looks simple, but the same errors catch people again and again:

• Chasing the highest yield. The stock with the biggest number is often the riskiest. An unusually high yield frequently signals a market that expects a dividend cut.
• Ignoring total return. A 7% dividend means little if the share price drops 15%. Weigh income and capital movement together.
• Overlooking sustainability. A payout ratio above 100%, rising debt, or falling earnings are all warning signs the dividend may not survive.
• Forgetting tax. From YA2025, dividend income above RM100,000 a year is taxable (see below) — a real consideration for larger portfolios.
• No diversification. Concentrating in one sector (usually banks) exposes your entire income stream to a single risk.

How to Buy Dividend Stocks in Malaysia (and the New 2% Tax)

Getting started is straightforward:

• Open a CDS and brokerage account. You’ll need a Central Depository System (CDS) account, opened through a licensed broker or a local bank’s online trading platform, to hold Bursa Malaysia shares.
• Fund and buy. Transfer money in and place your order by Bursa code (for example, 1155 for Maybank). Many brokers now offer low or zero commission on Malaysian shares.
• Watch the key dates. To receive a dividend you must own the shares before the ex-dividend date. Payment follows a few weeks later.
• Consider reinvesting. Some companies offer a dividend-reinvestment plan (DRP) that lets you take new shares instead of cash — a simple way to compound.

The 2% dividend tax: Under Budget 2025, individual shareholders pay a 2% tax on chargeable dividend income above RM100,000 per year, effective from Year of Assessment 2025. The first RM100,000 stays exempt — so if you receive RM150,000 in dividends, only the RM50,000 above the threshold is taxed at 2%. It’s self-assessed, so you declare it in your annual return. Dividends from EPF, certain approved funds and specific exempt sources fall outside the charge. Most retail investors won’t hit the RM100,000 mark, but high-income portfolios should plan for it. Always confirm the latest rules with the Inland Revenue Board (LHDN) or a licensed tax adviser.

New to the market entirely? Start with the basics in our how to start investing with RM1,000 guide, and understand the difference between trading and investing before you commit.

Conclusion

Malaysia remains one of Asia’s better hunting grounds for dividend income, with a market average yield near 4.5% and plenty of quality names paying 5–7%. But the winning approach isn’t to grab the biggest yield — it’s to buy companies that can keep paying: healthy payout ratios, manageable debt, and a track record through the cycle. Spread your income across banks, REITs and utilities, mind the new 2% tax if your dividends are large, and reinvest where you can. Do your own research and, for tailored advice, speak to a licensed financial adviser before building your portfolio.

FAQs

All yields and figures were verified in July 2026 and move with share prices — always reconfirm against the company’s latest financial reports and the provider before investing.

Disclaimer:

This article is offered for general informational purposes only and is not meant to cover all facets of the subjects it addresses. It is not intended as investment advice you should rely on. You should seek professional advice before acting, or refraining from acting, on the basis of the information here. The content in this publication does not represent advice from KayaToday. Past performance does not guarantee a comparable outcome. We give no assurances, express or implied, that the information in this publication is accurate, complete, or up to date.