Dividend investing remains a key strategy for Malaysian investors seeking stable income in 2026, particularly amid an uncertain global economic environment. Bank stocks listed on Bursa Malaysia continue to attract income-focused investors due to their strong capital positions, consistent earnings, and resilient dividend payouts.
This article highlights the Top 5 Malaysian bank stocks with the highest dividend yields, offering a clear ranking, estimated yields, and key insights to help investors identify reliable dividend opportunities in Malaysia’s banking sector for 2026.
“This article is for informational purposes only and does not constitute financial advice.”
5 Highest Dividend Yields Bank Stocks (2026 Outlook)
| Bank Name | Ticker | 2026 Estimated Dividend Yield | Dividend Consistency |
| Bank Islam Malaysia Berhad | BIMB | ~5.65% | Semi-annual, consistent payouts |
| CIMB Group Holdings Berhad | CIMB | ~5.45% | Semi-annual, stable with minor fluctuations |
| RHB Bank Berhad | RHBBANK | ~5.27% | Semi-annual, reliable with moderate growth |
| Malayan Banking Berhad | MAYBANK | ~5.11% | Semi-annual, long track record |
| AMMB Holdings Berhad | AMBANK | ~4.90% | Semi-annual, stable payout focus |
Major Malaysian Banks on Bursa Malaysia
| Bank Name | Ticker | Market Position | Dividend Profile |
| Bank Islam | BIMB | First Islamic Bank | Consistent |
| Maybank | MAYBANK | Largest bank | High & consistent |
| Public Bank | PBBANK | Retail-focused | Very stable |
| CIMB Group | CIMB | Regional bank | Competitive |
| RHB Bank | RHBBANK | Corporate & retail | High yield |
| Hong Leong Bank | HLBANK | Efficient model | Sustainable |
Malaysia Top Banks With Highest 2026 Dividend Yields
1) Bank Islam Malaysia Berhad (BIMB) ~5.65%
Bank Islam Malaysia Berhad, the first Islamic bank listed on Bursa Malaysia, has been a pioneer in Shariah-compliant retail and corporate banking since 1983. It offers a wide range of products, including financing, deposits, investment solutions, and wealth management services, all in line with Islamic principles. As a niche player in Shariah-compliant Malaysian bank stocks, BIMB attracts investors seeking ethical banking exposure while benefiting from stable income.
Dividend Yield
- 2024: ~5.8%
- 2025: ~5.7%
- 2026 (Estimated): ~5.65%
Suitable for: Retirees and income-focused investors
BIMB consistently delivers attractive yields above the average Malaysian bank dividend, making it a key choice for income-focused investors.
Dividend Consistency & Payout Trend
- Dividends are paid semi-annually, reflecting steady earnings and a moderate payout ratio.
- The bank’s dividend history shows reliable payments even during economic slowdowns.
- Over recent years, BIMB’s yields have consistently outperformed industry averages, demonstrating resilience and stability.
Why Investors Should Consider BIMB
- Attractive dividend income: One of the highest among Malaysian bank stocks in 2026.
- Shariah-compliant niche: Ideal for ethical and Islamic finance investors seeking consistent returns.
- Growth potential: Expanding financing and asset growth support long-term profitability and dividend sustainability.
2) CIMB Group Holdings Berhad (CIMB) ~5.45%
CIMB Group Holdings Berhad is one of Malaysia’s largest banking groups, with a strong regional presence across ASEAN. It provides a full range of retail, corporate, and investment banking services, along with Islamic banking under its CIMB Islamic brand. As a leading Malaysian bank stock, CIMB appeals to both income and growth-focused investors due to its diversified revenue streams, extensive network, and commitment to shareholder returns.
Dividend Yield
- 2024: ~5.45%
- 2025: ~5.5%
- 2026 (Estimated): ~5.45%
Suitable for: Investors who also want regional growth exposure
CIMB offers competitive yields relative to its peers, making it a solid choice for dividend investors on Bursa Malaysia seeking stable income in 2026.
Dividend Consistency & Payout Trend
- Dividends are typically paid semi-annually, reflecting the group’s consistent earnings and moderate payout policy.
- CIMB has maintained a relatively stable dividend history, with minor fluctuations due to market conditions.
- The bank balances capital growth and shareholder payouts, ensuring dividends remain sustainable even during slower economic periods.
Why Investors Should Consider CIMB
- Attractive yield with regional exposure: Offers stable income while benefiting from ASEAN growth opportunities.
- Strong fundamentals: Diversified operations and robust capital ratios support sustainable dividend payments.
- Long-term income potential: Regular payouts combined with moderate growth make CIMB a reliable high dividend Malaysian bank stock in 2026..
3) RHB Bank Berhad ~5.27%
RHB Bank Berhad is a leading Malaysian bank providing a wide range of retail, corporate, and investment banking services. With a strong presence in Malaysia and selected ASEAN markets, RHB focuses on commercial banking, Islamic banking, and wealth management. Its diversified operations and solid market position make it a reliable choice for Malaysian bank stocks targeting dividend-focused investors.
Dividend Yield
- 2024: ~5.3%
- 2025: ~5.25%
- 2026 (Estimated): ~5.27%
Suitable for: Conservative investors
RHB consistently offers yields above 5%, making it one of the attractive high dividend Malaysian bank stocks for 2026.
Dividend Consistency & Payout Trend
- Dividends are paid semi-annually, supported by stable earnings and healthy capital ratios.
- RHB has demonstrated consistent payouts over recent years, even amid economic uncertainties.
- Dividend growth is moderate but reliable, reflecting the bank’s balanced approach between shareholder returns and reinvestment.
Why Investors Should Consider RHB
- Reliable dividend income: Offers steady yields above industry averages.
- Diversified banking operations: Balanced exposure across retail, corporate, and Islamic banking supports long-term profitability.
- Moderate growth with income focus: Suitable for investors seeking high dividend Malaysian bank stocks with lower volatility.
4) MAYBANK ~5.11%
Malayan Banking Berhad (Maybank) is Malaysia’s largest bank and one of Southeast Asia’s most prominent financial institutions. It provides comprehensive retail, corporate, investment, and Islamic banking services across Malaysia and the region. Known for its strong brand, extensive branch network, and diversified operations, Maybank is a top choice among Malaysian bank stocks for both dividend and long-term growth investors.
Dividend Yield
- 2024: ~5.15%
- 2025: ~5.1%
- 2026 (Estimated): ~5.11%
Suitable for: Investors seeking both stability and growth
Maybank’s dividend yield consistently ranks among the highest in Malaysia’s banking sector, making it attractive for investors seeking stable income from bank stocks on Bursa Malaysia.
Dividend Consistency & Payout Trend
- Dividends are typically paid semi-annually and supported by strong earnings and healthy capital ratios.
- Maybank has a long track record of consistent dividend payouts, with minor fluctuations depending on market conditions.
- The bank maintains a balanced dividend policy, combining shareholder returns with sustainable growth initiatives.
Why Investors Should Consider Maybank
- Reliable dividend income: Offers steady yields above 5%, appealing to income-focused investors.
- Market leadership: As Malaysia’s largest bank, Maybank provides stability and diversified revenue streams.
- Long-term growth potential: Strong regional presence and expansion strategies support both capital appreciation and dividends.
5) AMMB Holdings Berhad (AMBANK) ~4.90%
AMMB Holdings Berhad (AMBANK) is a mid-sized Malaysian banking group offering a full suite of retail, commercial, and Islamic banking services. It operates through a network of branches nationwide and provides wealth management, insurance, and investment products. AMBANK’s balanced approach between corporate and retail banking makes it a reliable option among Malaysian bank stocks for investors seeking consistent dividend income.
Dividend Yield
- 2024: ~4.95%
- 2025: ~4.9%
- 2026 (Estimated): ~4.90%
Suitable for: Investors prioritizing stable income with moderate risk
Though slightly lower than some of its peers, AMBANK’s dividend yield remains attractive for income-focused investors, particularly for those seeking steady cash flow combined with moderate growth.
Dividend Consistency & Payout Trend
- Dividends are generally paid semi-annually, supported by stable earnings and prudent capital management.
- AMBANK has demonstrated consistent dividend payments, maintaining shareholder confidence even during periods of market volatility.
- Its payout trend emphasizes stability over high yield, appealing to conservative dividend investors.
Why Investors Should Consider AMBANK
- Stable dividend income: Reliable payouts make it a solid choice for long-term dividend investors.
- Balanced banking operations: Exposure across retail, corporate, and Islamic banking enhances income sustainability.
- Moderate growth potential: Steady earnings and prudent management support long-term profitability and dividends.
Overview of Malaysia’s Banking Sector
Short Snapshot of Malaysia’s Top Banks
Malaysia’s banking sector is dominated by a small group of large, well-capitalised banks listed on Bursa Malaysia. Leading Malaysian bank stocks such as:
- Maybank
- Public Bank
- CIMB Group
- RHB Bank
- Bank Islam
These blue-chip banks play a central role in the country’s financial system and are widely regarded as blue-chip investments. These banks are especially popular among investors seeking stable returns and reliable dividend income.
Role of Bank Negara Malaysia (BNM)
Bank Negara Malaysia (BNM) acts as the key regulator of the Malaysia banking sector, ensuring financial stability through strict supervision and monetary policy oversight. By enforcing capital adequacy requirements and prudent risk management, BNM helps maintain the strength of Malaysian banks, which in turn supports sustainable dividend payments and long-term investor confidence.
Why Malaysian Banks Are Known for Consistent Dividends
Malaysian banks generate steady income from lending, deposits, and fee-based services, allowing them to deliver consistent dividend payouts over time. Supported by strong balance sheets and conservative management practices, many Malaysian bank stocks continue paying dividends even during economic downturns. This track record makes them some of the most attractive high dividend stocks in Malaysia for long-term and income-focused investors.
Key Factors to Consider Before Investing in High Dividend Bank Stocks
1. Dividend Sustainability
- Check if the bank has a consistent dividend history over multiple years.
- Assess payout ratios to ensure dividends are supported by earnings, not just cash reserves.
- Look for banks with stable profits and strong capital buffers, as these can maintain dividend payments even during economic slowdowns.
2. Capital Adequacy Ratio (CAR)
- Capital Adequacy Ratio (CAR) measures a bank’s financial strength and ability to absorb losses.
- Banks with higher CAR are generally safer and more likely to sustain dividends.
- Regulatory oversight by Bank Negara Malaysia (BNM) ensures banks maintain healthy CAR levels.
3. Earnings Growth
- Look for banks with steady and growing earnings, which support long-term dividend payouts.
- Analyze revenue streams from retail, corporate, and Islamic banking, as diversified income reduces risk.
- Earnings growth also indicates potential future dividend increases.
4. Economic and Interest Rate Environment
- Bank profitability is sensitive to interest rate changes, economic growth, and inflation trends.
- Rising interest rates can increase net interest margins but may affect loan demand.
- Economic stability in Malaysia and the ASEAN region supports consistent bank earnings and dividends.
Why Dividend Yields Matter for Bank Stock Investors
Dividend yield measures a bank’s annual dividend as a percentage of its share price, helping investors compare income potential across Malaysian bank stocks on Bursa Malaysia. High dividend yields are attractive to income-focused and passive investors, including retirees, because they provide regular cash flow without selling shares.
Malaysian banks are known for stable earnings and strong capital positions, supporting consistent dividends. Long-term holdings allow investors to benefit from compounding dividends, gradually growing wealth.
However, chasing very high yields can be risky. Extremely high dividends may indicate declining share prices or unsustainable payouts, which could lead to cuts during economic slowdowns or regulatory changes. Sustainable dividends come from consistent earnings and solid capital, making them a safer choice for long-term investors.
Risks of Investing in High Dividend Bank Stocks
1. Dividend Cuts During Downturns
- Even banks with a strong dividend history can reduce payouts during economic slowdowns.
- Lower profits, higher loan defaults, or liquidity stress can trigger temporary or permanent dividend cuts.
- Investors should avoid chasing the highest yield only and focus on banks with sustainable payout ratios.
2. Regulatory Changes
- Policies by Bank Negara Malaysia (BNM) or other authorities can affect dividend policies.
- Changes in capital requirements, payout limits, or Shariah compliance rules may reduce distributable earnings.
- Regulatory oversight is essential for stability, but investors must monitor new rules that impact dividend sustainability.
3. Rising Credit Risks
- Banks face risks from loan defaults, corporate bankruptcies, and household debt pressures.
- Higher credit risk can reduce profits and limit the ability to pay dividends.
- Evaluating a bank’s asset quality and risk management is critical before investing in high dividend stocks.
Are High Dividend Malaysian Bank Stocks Worth Buying in 2026?
1. Outlook for Interest Rates
- Bank profitability is closely linked to interest rate movements in Malaysia.
- Rising interest rates can increase net interest margins, benefiting banks’ earnings and dividend capacity.
- Conversely, sharply higher rates may slow loan growth, slightly impacting short-term dividends.
2. Banking Sector Growth Prospects
- Malaysia’s banking sector is stable and well-capitalized, with strong retail, corporate, and Islamic banking segments.
- Moderate economic growth in 2026 supports loan expansion, fee income, and sustainable dividends.
- Leading banks on Bursa Malaysia are expected to maintain consistent payouts, making them attractive for income investors.
3. Suitability for Retirees vs Growth Investors
- Retirees & income-focused investors: High dividend Malaysian bank stocks provide regular cash flow and lower volatility, ideal for supplementing retirement income.
- Growth-focused investors: While dividend yields are attractive, capital appreciation may be slower compared to growth-oriented stocks, so a balance with growth equities is recommended.
- Understanding personal risk tolerance and investment horizon is crucial before investing.
Conclusion: Are High Dividend Malaysian Bank Stocks Worth Investing in 2026?
High dividend Malaysian bank stocks remain an attractive option for income-focused investors in 2026. With stable earnings, consistent dividend payouts, and regulatory oversight by Bank Negara Malaysia (BNM), banks like BIMB, CIMB, RHB, Maybank, and AMBANK offer reliable cash flow and relatively lower risk compared to other equities.
Investors should consider key factors such as dividend sustainability, capital adequacy, earnings growth, and the economic environment before investing. While rising interest rates and moderate sector growth support dividend stability, potential risks like credit exposure, regulatory changes, and economic slowdowns should not be ignored.
For retirees and income-seeking investors, these high dividend bank stocks on Bursa Malaysia provide a dependable source of income. Growth-focused investors can also benefit, though capital appreciation may be slower than high-growth sectors.
By balancing yield, sustainability, and sector fundamentals, Malaysian bank stocks can remain a core component of a diversified 2026 investment portfolio.
FAQs: High Dividend Malaysian Bank Stocks 2026
1. Why are Malaysian bank stocks popular for dividend investing?
Malaysian banks are highly regulated, capitalized, and generate stable profits from retail, corporate, and Islamic banking operations. Their consistent dividend payouts and strong financial stability make them attractive for income-focused investors, retirees, and those seeking regular cash flow.
2. What factors should I consider before investing in high dividend bank stocks in Malaysia?
Key factors include:
- Dividend sustainability: Ensure payouts are supported by earnings.
- Capital Adequacy Ratio (CAR): Indicates financial strength and risk absorption.
- Earnings growth: Consistent growth supports future dividends.
- Economic and interest rate environment: Impacts bank profitability and dividend potential.
3. What are the risks of investing in high dividend Malaysian bank stocks?
- Dividend cuts during economic downturns.
- Regulatory changes that may affect payout policies.
- Rising credit risks due to loan defaults or deteriorating asset quality.
Investors should weigh these risks against the stable income benefits.
4. Are high dividend Malaysian bank stocks suitable for retirees?
Yes. They provide regular income, lower volatility, and reliable cash flow, making them ideal for retirees or income-focused investors. Growth investors can also include them in a diversified portfolio, but capital appreciation may be slower compared to high-growth sectors.
5. How does the 2026 interest rate outlook affect bank dividends in Malaysia?
Rising interest rates can increase net interest margins, boosting bank earnings and supporting dividend payouts. However, sharply higher rates may slow loan growth, slightly impacting short-term dividend stability. Stable rates and moderate economic growth generally favor consistent high dividend yields.
