Top 50 Best Bursa Malaysia Dividend Stocks of the Year (2018)

Stock Name	Total Dividend (cents)
NESTLE	280
PANAMY	248
DLADY	200
PEB	195
BAT	155
UTDPLT	140
CARLSBG	100
HEIM	94
PETGAS	72
PETDAG	70
PBBANK	69
LPI	68
AIRASIA	64
F&N	57.5
MAYBANK	57
BKAWAN	55
TENAGA	53.27
HLBANK	48
HLIND	47
AJI	46.5
KLK	45
AEONCR	41.13
HLFG	40
ORIENT	40
ALLIANZ	40
HAPSENG	35
UCHITEC	34
BURSA	33.6
PCHEM	32
MISC	30
PERSTIM	30
CHINTEK	30
MPI	29
PPB	28
AMWAY	27.5
LITRAK	25
CIMB	25
SAM	23.36
GENTING	21.5
SDRED	21.5
ATLAN	21
TIMECOM	20.56
RHBBANK	20.5
IOICORP	20.5
SCIENTX	20
MAGNI	20
HARISON	20
PETRONM	20
HAIO	20
MAXIS	20

https://www.malaysiastock.biz/Report-Analysis/Top-KLSE-Dividend-Stock.aspx

3 Years Continuously Improvement in Dividend (2017,2018,2019)

3 Years Continuously Improvement in Dividend (2017,2018,2019)

Stock Name	Dividend (2019)	Dividend (2018)	Dividend (2017)
AHP	5.75	5.63	5.2
AIRASIA	90	64	12
ALLIANZ	65	40	12
ALLIANZ-PA	78	48	14.4
ARREIT	6.2	6.08	5.49
AXREIT	9.26	8.74	8.26
BIMB	16	15.5	14
BOILERM	2	1.75	1.5
CARING	6	5	3
DIALOG	3.8	3.2	2.65
FPI	11	10	8
FRONTKN	2.5	1.5	0.5
HLBANK	50	48	45
HLFG	42	40	38
HLIND	50	47	45
JOHOTIN	6.4	5	4
KLCC	38	37	36.15
KOTRA	7.4	5	4
MAGNUM	16	15	11
MASTER	2	1.5	1
MBMR	13	12	3
METFSID	2.17	1.99	1.51
OPENSYS	1.5	1.25	1
PBBANK	73	69	61
PETGAS	82	72	66
PTRANS	1	0.95	0.7
RCECAP	9	7	3
SAM	29.05	23.36	17.23
SUNREIT	9.59	9.57	9.19
TIMECOM	29.03	20.56	17.2
TMCLIFE	0.2	0.18	0.17
ZHULIAN	12	10	7.5

https://www.malaysiastock.biz/Report-Analysis/Continuously-Improvement-Dividend-KLSE-Stock.aspx

What dictates dividend policy?

Management determines if it is going to 

• distribute earnings in the form of a dividend or 
• reinvest all earnings to further the business plan of the company. 

The ratio of dividends paid out to investors versus the amount of earnings retained is called the payout ratio.  

The Dividend Decision

Changes in tax law and investor preference can influence decisions in the corporate boardroom regarding how much profit to retain or to pay out to investors in the form of dividends.  

However, dividend increases often lag behind an increase in earnings because management will want to be certain that a new higher dividend payment will be sustainable going forward.

Change in Dividend Yield has a lot to do with change in Share Price

Looking back over market history, we can see that dividend policy and payouts have remained relatively steady and that any change in dividend yield has had a lot more to do with the change in stock prices than with changes to dividend policy made by corporate directors.  (Note:  You can 'price' your stocks by looking at historical dividend yields.)




A cut in dividends is often perceived negatively

Management is usually very reluctant to reduce dividends because a cut is often perceived as a sign of financial weakness.  

Even during the Great Depression, companies were loath to cut dividends.  

• From 1929 to 1932, dividend yields soared because most companies maintained their dividends as stock prices collapsed in the crash.  
• But, as stock prices rose from 1933 to 1936, dividend yields fell - even though companies were actually increasing the dividends they paid.

This inverse relationship between dividend yield and price was really evident during the huge bull market run from 1982 to 1999.  

• Companies increased dividends steadily over the period, actually increasing dividends paid by almost 400 percent.  
• Yet the dividend yield collapsed to historic lows because stock prices increased by 1,500 per cent.

Some companies do run into trouble and cut or omit their dividend payments, but this is the exception rather than the rule. 



The typical dividend-paying company

The typical dividend-paying company not only maintains the dividend payout it establishes, but follows a policy of steadily increasing its dividend as earnings increase. 

Some companies increase their dividend payments 

• (1) every quarter, 
• (2) some once per year, and 
• (3) others only as profits allow.

Some companies will even pay extra or special dividends if earnings have been quite good for a number of years.


Dividend policy

Many established public companies pay cash dividends and have a dividend policy that is well known to their investors.  

Some of them have been paying cash dividends for a very long time.

What I’ve Learned After Making More Than 5-Figures In Dividends

What I’ve Learned After Making More Than 5-Figures In Dividends

By The Fifth Person on December 28, 2015

As investors, we all love dividends. Other than the thrill of seeing a stock you own rise higher and higher in the stock market, receiving passive dividend income from your investments every year is something we all look forward to.

So if you’re more of an income investor and looking to invest for dividends, your stock portfolio will be markedly different from someone who’s investing for high growth and capital gain. The stocks that will give good, consistent dividends may not necessarily be the kind that will grow by 20-50% a year and vice versa.

So if you investing for dividends, you have to invest accordingly and only pick the best stocks that will give the passive dividend income you want. The question is: How?

Over the years, our investments have received more than 5-figures in dividends. So if you’re slightly lost and looking for some direction, here are 7 quick steps that we personally use to pick the best dividend stocks around: (Hint: You can’t just look at dividend yield alone!)



#1 Look for Mid-Large Cap Stocks

The best dividend stocks are usually large, mature companies with stable revenue, profits and cash flow. These companies have little growth left in them. Because these companies are no longer expanding aggressively, the majority of their earnings can be returned to shareholders as dividends.

On the other hand, a smaller, high-growth company needs more cash and resources to grow and expand its business, leaving less money to pay shareholders dividends (if any).


#2 Dividend Payout Ratio is 50% or More

If a company is large, stable and isn’t seeking to grow aggressively any more, then the majority of the profits it makes should be returned to shareholders. So look for a company with a dividend payout ratio of at least 50% or more. For example, Nestlé (Malaysia) returns over 90% of its earnings to shareholders as dividends.

If a company has a low payout ratio, ask yourself why the company is holding on to the cash. Unless they have a good reason to do so or have a way to generate exceptional returns for shareholders, the majority of profits should be paid out as dividends.



#3 Track Record of Paying Consistent Dividends

The company should have a long and stable track record of paying consistent/growing dividends to shareholders. No point if a company is large and successful and has profits to distribute as dividends, but chooses to pay them out inconsistently.

The best track record is to see a company pay a consistently growing dividend over the last 5-10 years. This shows that as the company grows more and more successful, the management is also willing to share the fruits of its labour with its shareholders.


#4 Company’s Fundamentals Must Be Sustainable

Many dividend investors tend to ignore the overall aspects of a company’s fundamentals and primarily focus on the amount of dividends they can receive from an investment. While dividend yield is obviously important for someone seeking dividends, it is also important to consider the overall health of the company.

A company with deteriorating fundamentals (e.g. falling revenue, profits, cash flow, fading economic moat, etc.) cannot sustain its dividend payout in the long term. The less revenue and profit it makes, the less dividends it can pay.

Furthermore, a company with falling revenues and profits will see its stock price fall in tandem over time as investors start to realize the company is no longer performing as well. This fall in value will eat into any dividend gains you might have had at the start — leaving you back at square one.

So always make sure the dividend company you want to invest in will remain fundamentally strong and robust for many years to come.



#5 Company has Low CAPEX

As a dividend investor, you prefer to invest in a company with low capital expenditure (CAPEX). A company with high CAPEX means that it has to continually reinvest its profits in maintaining its business operations, leaving less to distribute as dividends.

For example, airlines have very high CAPEX as they need to continually maintain their aircraft and upgrade them to newer models after a certain amount of years.

So look for a company that’s able to maintain/grow its business with minimal CAPEX.

If you want help, you can always kick start the idea by downloading our watchlist of dividend paying stocks below:


#6 Company has Stable Free Cash Flow

Ultimately, a company must have real cash (not just profits) to be able to pay dividends to its shareholders. Even if a company is profitable but has negative or inconsistent free cash flow, it will have trouble paying stable dividends.

A smaller company that is seeking to grow might have negative free cash flow as it expands its business. But a large, stable company that dominates its industry should be producing high amounts of free cash flow year after year.



#7 Yield Must Beat Risk-Free Rate

The dividend yield you receive from a stock should beat the risk-free rate of the country you reside in. The risk-free rate is the lowest return you can theoretically get “risk-free”over a period of time.

In the US, if you plan to invest your money for ten years, then the risk-free rate is usually based on the return of the 10-year US Treasury note which is currently around 2.30%. In Malaysia, the risk-free rate is usually based on the guaranteed interest your EPF gives you which is 2.5%. However, since 2000, EPF has been able to give out between 4.25% to 6.75%, which is more than the minimal guaranteed.

If your dividend yield can’t beat your risk-free rate, you might as well put your money with the US Treasury / EPF since you face less risk investing in a US Treasury note / EPF than investing in a stock to generate the same returns.



The Fifth’s Perspective

There you have it! Seven quick steps to help you pick the best dividend stocks to invest in. As you can see, there are lots more items to consider other than just dividend yield!

So remember to check these seven criteria whenever you’re looking to invest for dividends.


https://fifthperson.com/what-ive-learned-after-making-more-than-5-figures-in-dividends/

Top 100 Companies of KLSE 3.1.2014 (Sorted by DY)

Top 100 Companies of KLSE 3.1.2014 (Sorted according to DY)

#Rank		Company		Price		PE		EY %		DY %
66		Kulim		3.38		5		20.0		29.1
54		MBSB		2.17		6.8		14.7		13.3
48		AirAsia		2.37		3.5		28.6		10.1
56		BJToto		4.01		13.8		7.2		7
1		Maybank		9.91		13.6		7.4		6.6
77		SunReit		1.25		8.9		11.2		6.6
93		UOADev		1.87		7.6		13.2		6.4
83		Parkson		2.86		12.9		7.8		6.3
94		CMMT		1.4		9.9		10.1		6
52		Bstead		5.6		13.9		7.2		5.8
8		Maxis		7.13		28.9		3.5		5.6
85		Dlady		47.3		24.5		4.1		5.5
10		DiGi		4.85		31.3		3.2		5.4
72		PavReit		1.32		6.3		15.9		5.2
4		Axiata		6.8		22.7		4.4		5.1
76		Carlsbg		12.24		19.5		5.1		5.1
65		Magnum		3.15		13.3		7.5		5.1
89		Media		2.62		13.5		7.4		5
55		Utd Plant		26.18		15.9		6.3		4.8
46		LAFMSIA		8.41		20.5		4.9		4.4
24		BAT		63.88		22.9		4.4		4.3
62		GAB		15.9		22.1		4.5		4.3
22		TM		5.39		15.3		6.5		4.1
30		UMW		12.28		15.1		6.6		4.1
80		Bintulu Port		7.5		20.5		4.9		4
75		LPI		17.46		23		4.3		3.7
78		MSM		5.1		17.7		5.6		3.7
45		SPSetia		2.95		16.5		6.1		3.7
6		Sime		9.39		15.2		6.6		3.6
50		HapSeng		2.95		15.1		6.6		3.6
13		PetDag		30.4		36.1		2.8		3.5
44		AFG		4.8		13.6		7.4		3.5
51		Affin		4.26		10.1		9.9		3.5
14		IOICorp		4.58		14.9		6.7		3.4
67		Bursa		8.13		28.5		3.5		3.3
47		F&N		18.4		25.7		3.9		3.3
61		GasMsia		3.95		31.2		3.2		3.2
7		Pchem		6.84		15.5		6.5		3.2
16		HLBank		14.24		13.5		7.4		3.2
28		Nestle		67.96		31.5		3.2		3.1
86		Pos		5.57		19.7		5.1		3.1
100		Zhulian		4.93		19.4		5.2		3.1
26		FGV		4.53		15.9		6.3		3.1
5		CIMB		7.51		12.9		7.8		3.1
20		AMBank		7.29		13.4		7.5		3
53		MHB		3.61		23.9		4.2		2.8
70		IGB		2.72		21.8		4.6		2.8
79		Top Glove		5.73		18.1		5.5		2.8
39		Bkawan		19.6		16.8		6.0		2.8
21		RHBCap		7.97		10.1		9.9		2.8
82		Mah Sing		2.27		9.9		10.1		2.7
49		BIMB		4.38		19.5		5.1		2.6
35		Gamuda		4.61		18.2		5.5		2.6
2		PBBank		18.9		17.1		5.8		2.6
99		CMSB		6.78		16		6.3		2.5
3		Tenaga		11		13.3		7.5		2.3
27		HLFG		15.5		10.9		9.2		2.3
43		IJM		5.85		19.2		5.2		2.2
59		DRBHCOM		2.72		9.1		11.0		2.2
9		PetGas		23.6		33.2		3.0		2.1
18		KLK		24.12		28		3.6		2.1
71		Tchong		5.98		24.7		4.0		2
73		KPJ		3.87		24.7		4.0		2
90		IJMPlnt		3.48		23.3		4.3		2
57		Harta		7.23		22.5		4.4		2
17		GENM		4.38		17.7		5.6		2
74		IJMLand		2.52		16.4		6.1		2
64		Sunway		2.75		7.7		13.0		1.9
84		Dayang		5.66		30.5		3.3		1.8
97		BJCorp		0.56		29.6		3.4		1.8
63		Aeon		13.64		22.5		4.4		1.8
98		WCT		2.14		5.5		18.2		1.8
25		YTL		1.6		12.4		8.1		1.6
37		MMCCorp		2.85		9.4		10.6		1.6
87		Shang		6.78		44.3		2.3		1.5
96		Kseng		6.73		28.7		3.5		1.5
69		IGBReit		1.2		26.6		3.8		1.5
33		Airport		8.8		26.5		3.8		1.5
92		Kossan		4.1		25.1		4.0		1.4
23		PPB		15.92		22.4		4.5		1.3
36		UEMS		2.32		22.4		4.5		1.3
29		Astro		2.98		13.4		7.5		1.3
68		BJLand		0.82		124.2		0.8		1.2
81		QL		4.1		25.9		3.9		1.1
42		GENP		10.98		25.5		3.9		1.1
41		Dialog		3.4		42.1		2.4		1
60		Orient		8.39		22.1		4.5		1
91		TSH		2.92		31.4		3.2		0.9
88		SOP		6.65		21.5		4.7		0.9
11		Genting		10.08		9.3		10.8		0.8
32		Armada		4.08		31		3.2		0.7
31		YTLPowr		1.85		12.5		8.0		0.5
15		SKPetro		4.57		43.6		2.3		0
12		IHH		3.91		34.1		2.9		0
95		HLCap		10		26.1		3.8		0
19		MISC		5.51		0		0.0		0
34		KLCC		5.94		0		0.0		0
38		WPRTS		2.53		0		0.0		0
40		UMWOG		3.91		0		0.0		0
58		MAS		0.32		0		0.0		0

# Rank is based on market capitalization

Top 100 Companies of KLSE 3.1.2014 (Market P/E is 17.1 and DY is 3.2%)

Tesco: A FTSE 100 Dividend-Raising Star

By Kevin Godbold
October 19, 2012 

LONDON -- In an outcome that's tough on investors, the FTSE 100 has failed to deliver a rising dividend payout over the last few years.

Just look at the iShares FTSE 100 ETF, for example. This is an exchange-traded fund that tracks the benchmark index, and we can see the aggregate payment from Britain's top 100 companies has yet to regain its pre-recession peak:

Year	2007	2008	2009	2010	2011
Dividend per share (in pence)	19.1	20.2	17.1	16.2	18.1

But some companies within London's premier index have performed well on dividends, despite these austere times, and this series aims to seek them out. One such name is Tesco(LSE: TSCO.L  ) (NASDAQOTH: TSCDY.PK)

The big question is: Can the company's dividend continue to outperform its index? Let's take a closer look.

Tesco owns the U.K.'s largest supermarket chain and is expanding abroad as well. With the shares at 322 pence, the market cap is 25.8 billion pounds. This table summarizes the firm's recent financial performance:

Trading Year	2007	2008	2009	2010	2011
Revenue (in millions of pounds)	47,298	53,898	56,910	60,455	64,539
Net cash from operations (in millions of pounds)	3343	3960	4745	4239	4408
Diluted earnings per share (in pence)	26.61	26.96	29.19	34.25	36.64
Dividend per share (in pence)	10.9	11.96	13.05	14.46	14.76

So, the dividend has increased by 35% during the last five years -- equivalent to a 7.9%compound annual growth rate.

Tesco describes itself as one of the world's largest retailers with operations in 14 countries and employing more than 500,000 people. In the U.K., it is the country's largest retailer. Britain is important to Tesco as it currently accounts for two thirds of global sales. That's why the shares fell when profits slipped recently, and the directors admitted that the U.K. store portfolio had suffered from under-investment, thanks to the pursuit of international growth. There's evidence to suggest where investment has gone in the statistic that two-thirds of Tesco's selling space is overseas. So the majority of stores are abroad despite foreign sales only contributing one third of revenues.

Right now, the directors have firmly re-focused on the core U.K. market, and a domestic investment program is under way. Tesco has some catching up to do at home, but I'm with those that think it can achieve that and go on to grow international sales and profits. If the company pulls off that double whammy, there's potential cheer for those using the current share price setback to lock in a decent dividend yield, as the progressive dividend policycontinues.

Tesco's dividend growth scoreI analyze four different features of a company to judge whether its dividend can continue to rise:

1. Dividend cover: the recent dividend was covered around 2.5 times by earnings. 4/5
2. Net cash or debt: net gearing just over 50% with debt around 2.5 times earnings. 3/5
3. Cash flow: historically, good cash support for profits. 4/5
4. Outlook and recent trading: earnings down in recent trading and the outlook is flat.3/5

Overall, I score Tesco 14 out of 20, which encourages me to believe the firm's dividend can continue to out-pace dividends from the FTSE 100.

Foolish summaryCash flow is backing profits, and debt appears to be under control. The short-term outlook may be flat but it's hard to see Tesco's domestic investment failing. To me, the progressive dividend policy looks secure.

Right now, the forecast full-year dividend is 15.26 pence per share, which supports a possible income of 4.7%. That looks attractive to me.

Tesco is one of several dividend out-performers on the London stock exchange. 

http://www.fool.com/investing/international/2012/10/19/tesco-a-ftse-100-dividend-raising-star.aspx