Higher dividends help support Bursa Malaysia investor returns in an uncertain market

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Dividends support Bursa returns

Highlights

Estimated 1H2026 dividend payments by Bursa Malaysia's 100 largest companies rose 2.3% to RM29.08 billion from RM28.43 billion in 1H2025.
The financial services sector remained the leading contributor, with 1H2026 payments estimated at RM10.32 billion, down from RM11.78 billion in 1H2025.
Dividend payments in the plantation sector rose 25.8% year-on-year to RM1.76 billion, driven by resilient crude palm oil prices and strong cash flow.

This article was translated from the original. Read the original version by our correspondent here.

Dividend payment trends in the first half of 2026

As reported by The Edge Malaysia, Bloomberg data on the 100 largest companies on Bursa Malaysia by market capitalisation shows that 79 companies declared dividends in 1H2026, compared with 80 companies in 1H2025.

Of the 75 companies that paid dividends in both periods, 40 raised their dividends per share, 21 maintained them and 14 paid less. Estimated total dividend payments for 1H2026 rose 2.3% to RM29.08 billion, from RM28.43 billion in 1H2025.

M&A Equity Holdings Bhd managing director Datuk Bill Tan said dividends play a greater role when capital gains are harder to achieve, especially for companies outside the market themes in focus. According to him, many such stocks are still trading at low price-to-earnings ratios, and dividend declarations can generate high yields and attract investor interest.

Sector-by-sector impact in the Malaysian market

The financial services sector remained the largest dividend contributor, led by Malayan Banking Bhd, Public Bank Bhd and CIMB Group Holdings Bhd. For the first six months ended 30 June 2026, the three groups recorded dividend payments of 31 sen, 10.5 sen and 19.65 sen respectively, broadly similar to the same period last year.

However, estimated payments by the sector in 1H2026 totalled approximately RM10.32 billion, compared with around RM11.78 billion in 1H2025, taking into account declarations by Hong Leong and HLFG of RM625.98 million and RM525.45 million respectively this year.

The plantation sector recorded stronger growth, with estimated payments rising 25.8% year-on-year to RM1.76 billion from RM1.4 billion. The increase was supported by resilient crude palm oil prices, healthy cash flow and stronger balance sheets, giving producers greater flexibility to increase distributions to shareholders.

Earlier, we reported on the easing sell-off in global bonds in Asia as US Treasury yields fell after a sharp surge. Pressure also eased as oil prices declined, while equity markets improved as investors reassessed the interest rate outlook and inflation risks.

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