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Malaysia’s 10 Highest-Yielding Blue Chips

Credit: Simon Cunningham

If you are a dedicated follower of income, it can pay to look beyond the local market for our high-yielding shares. Thankfully for us in Singapore, we don’t have to venture too far. Just across the Causeway is Bursa Malaysia, which is home to many dividend payers.

The median yield for the Straits Times Index (SGX: ^STI) is around 3.7%. The comparable yield for the 30 companies that make up the Kuala Lumpur Composite Index (KLSE: ^KLSE) is 2.7%. But averages can be deceptive.

The highest yielding Malaysian blue chip is Malayan Banking Berhad (KLSE: 1155.KL; KLSE: MAYBANK). With a trailing dividend yield of 7.7%, it was nearly three times more rewarding than the market payout. The payout ratio was a high but a not-too-demanding 78%.

Elsewhere in the finance sector Islamic bank AMMB Holdings (KLSE: 1015.KL; KLSE: AMBANK) yielded 4.6%, while Public Bank (KLSE: 1295.KL; KLSE: PBBANK) yielded 2.8%.

They say that smoking is bad for your health. But British American Tobacco Malaysia (KLSE: 4162.KL; KLSE: BAT) could be good for your wealth. A dividend yield of 5.7% could put many a company’s payout to shame.

Infrastructure conglomerate YTL Corporation (KLSE: 4677.KL; KLSE: YTL) has its fingers in many pies. The power-to-property group paid out MYR989 million last year. With a market value of MYR17.5 billion, that equates to a dividend yield of 5.7%.

Telecom companies can be a good source of income, and Telekom Malaysia (KLSE: 4863.KL; KLSE: TM) is no exception. Based on its payout last year, the MYR25.6 billion behemoth yielded 5.1%. Staying on the phone, DiGi.com (KLSE: 6947.KL; KLSE: DIGI) boasts a historic yield of 4.2%, whilst Maxis Berhad (KLSE: 6012.KL; KLSE: MAXIS) yielded 3.3%.

The yield at media giant Astro Malaysia Holdings (KLSE: 1015.KL; KLSE: ASTRO) was a market-beating 4.4%. Nestle (Malaysia) yields 3.8%. The yield might not seem especially compelling. But the company has increased its payout 6% a year for the last five years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.