With the FBM KLCI’s expected yield at around 4.2% for 2026 and earnings growth slowing, dividends have become a critical line of defence for investment returns. Geopolitical tensions have also pushed investors toward defensive, income-generating assets. The good news? Malaysian banks, telcos and REITs are all positioned to deliver higher payouts this year. Here are 5 Malaysian high-dividend stocks to hold in 2026 — one from each of the country’s most dividend-rich sectors.
- Maybank offers one of the highest dividend yields in Malaysian banking at 6.0% to 6.4% with a 72% to 73% payout ratio guidance
- Telekom Malaysia’s new policy commits to at least 75% of net profit as dividends — implying yields of 4.8% to 6.2% through 2028
- Malaysian REITs are expected to deliver an average distribution yield of 5.8% in 2026 driven by Visit Malaysia 2026 tourism
- A portfolio of quality dividend payers yielding 5% to 6% provides both income and capital appreciation without chasing risky growth stocks
Shariah status per the SC Malaysia Shariah-Compliant Securities List. Maybank, RHB Bank, and CIMB Group are excluded as conventional banking groups running interest-based (riba) lending — each operates a separate Islamic banking arm (Maybank Islamic, RHB Islamic, CIMB Islamic), but the listed parent company itself doesn’t pass Shariah screening. Pavilion REIT is a conventional REIT; Malaysia’s Shariah-compliant REITs (i-REITs) are a distinct, shorter list (Axis REIT, Al-Aqar Healthcare REIT, Al-Salam REIT, AME REIT, and the REIT tranche within KLCC Stapled).
Lined up against the market, the case gets easier to see at a glance than in a table of numbers.
1. Malayan Banking (Maybank) — The Dividend King
Maybank delivered a solid 2025 with net profit of RM10.5 billion, up 4% year-on-year, and continues to offer one of the highest dividend yields in the Malaysian banking sector. The group has guided for a 72% to 73% payout ratio for FY2026 — among the highest in the industry. Recent dividend yield estimates cluster around 5.5% to 5.8%, making Maybank a core holding for income investors in Malaysia.
Analyst View: Rakuten has a target price of RM12.30 on Maybank, citing its leading 6.1% dividend yield as a key investment case for 2026.
2. Telekom Malaysia (TM) — The Rising Dividend Star
TM surprised the market in Q4 2025 by declaring an 18.5 sen dividend — a 69% payout ratio, its highest since 2018. But the real story is the company’s revised dividend policy: TM now commits to distributing at least 75% of net profit. RHB Research has revised its FY2026 to FY2028 dividend per share projection upward to 34 to 44 sen, implying yields of 4.8% to 6.2%.
What makes TM stand out is its record-low net gearing of just 0.2 times, strong cash flow, and structural growth drivers including data centre demand and submarine cable capacity. CIMB Securities has named TM its top pick in the telco sector with a buy call.
3. RHB Bank — The High-Yield Challenger
RHB offers a trailing yield of 5.97% with a forward yield of 5.90%. The bank paid a dividend of 35 sen per share in March 2026. With its strong capital position and consistent payout history, RHB is a solid alternative to Maybank for Malaysian investors seeking reliable dividend income. It is frequently listed among Malaysia’s top dividend stocks for 2026 alongside Bank Islam and Oriental Holdings.
4. CIMB Group — The Capital Return Story
CIMB delivered a solid 2025 with net profit of RM7.9 billion, up 1.7% year-on-year, and declared a full-year dividend of 47.1 sen per share — a record RM5.1 billion total payout, translating to a dividend yield of roughly 5.7%. In November 2025, CIMB became the first Malaysian company to announce a dedicated multi-year capital return programme, committing to return up to RM2 billion to shareholders by 2027 through a combination of special dividends and share buybacks, on top of its regular dividend. The first tranche arrived as a 7 sen special dividend in December 2025. CET1 stood at a healthy 14.3% as of end-2025, above the group’s own 14.0% minimum guidance, giving it room to keep executing this programme. Some of that capital return could arrive as buybacks rather than cash dividends in any given period — a distinction worth understanding, which we unpack in our guide on dividend stocks vs share buybacks.
5. Pavilion REIT — The Visit Malaysia 2026 Play
The Malaysian REIT sector is expected to deliver an average distribution yield of 5.8% in 2026. The key catalyst is Visit Malaysia 2026 — the government’s target of 47 million international tourists directly benefits retail malls and hotels. Pavilion REIT, which owns Pavilion KL, is one of the top beneficiaries of tourist spending. The KL REIT Index has outperformed the FBM KLCI by 3% year-to-date, and Affin Hwang has an overweight call on the sector with buy calls on Axis-REIT, Pavilion-REIT, IGB-REIT, AME-REIT and KIP-REIT. Read our full Malaysian REITs guide for more.
How to Choose the Right Stock for You
💡 MyFinanceMemo Tip: Before investing in individual dividend stocks, check that your emergency fund is in place and your EPF is on track. Use our Compound Interest Calculator to see how a 6% dividend yield reinvested grows your portfolio over 10 to 20 years. Also verify the Shariah status of any stock on the SC Malaysia official list before investing.
“You do not need to chase growth stocks to build wealth. A portfolio of quality Malaysian dividend payers yielding 5% to 6% can provide both income and capital appreciation — especially in a volatile market.”
— MyFinanceMemo Editorial Team
2026 presents a compelling case for dividend investing in Malaysia. Banks are sitting on strong capital buffers and raising payout ratios. TM is hiking its dividend policy to new highs. And REITs are riding the Visit Malaysia 2026 tourism wave. These 5 stocks offer yields of 5% to 6% — well above fixed deposit rates and competitive with the best high-yield savings accounts. Before you buy, it’s worth understanding how a company chooses between paying dividends and buying back its own shares, since that choice shapes long-term returns just as much as the yield itself — read our guide on dividend stocks vs share buybacks in Malaysia. For a broader investing strategy, also read our guides on Malaysian REITs and KLCI vs S&P 500 for Malaysian investors.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Dividend yields and projections are based on analyst estimates and historical data. Past performance does not guarantee future results. Always do your own research and consult a licensed financial advisor before investing. Verify Shariah status on the SC Malaysia website.
Share this article:
[…] EPF runs two portfolios with two very different personalities, and most members only ever hear about one of them. That isn’t necessarily a flaw — a defensive domestic anchor paired with an aggressive global growth sleeve is a genuinely reasonable way to build a national retirement fund. But it does mean your annual dividend rate is quietly shaped by decisions — and by companies — you were never told about directly. The next time you check your EPF statement, remember that the number on the page is the output of both a very Malaysian portfolio and a very Silicon Valley one, working together. For more on how EPF’s overall strategy and dividend mechanics work, read our guides on EPF vs ASB as a wealth strategy and 5 Malaysian dividend stocks to hold. […]