Over the last five years (FY2020 to FY2024), the Employees Provident Fund (EPF) provided dividend yields ranging between 5.2% and 6.3%, with a 10-year average of 5.9%. While that’s solid for a risk-free return, some Bursa Malaysia stocks have done better—consistently.

To find them, I applied three strict filters:

1. Outperformed EPF yields every year for five straight years.

2. Maintained a net-cash or low-debt balance sheet—dividends must come from real profits.

3. Operated across different sectors to avoid overexposure to any one industry.

Only five companies passed the test. Here’s the full dividend performance table:

Rank	Ticker	Sector	FY20	FY21	FY22	FY23	FY24	5-Year Avg
①	INNO	Plantation	13.86%	27.88%	14.13%	11.24%	10.00%	15.4%
②	BAUTO	Auto Distribution	7.45%	7.45%	12.30%	12.75%	14.39%	10.9%
③	UCHITEC	EMS / Tech	11.53%	9.09%	11.72%	8.81%	7.68%	9.8%
④	BAT	Consumer Staples	7.74%	8.44%	8.99%	7.36%	8.15%	8.1%
⑤	SCICOM	BPO & Edu-Tech	7.89%	7.24%	8.29%	7.66%	7.55%	7.7%

Quick Snapshots & Strengths

• Innoprise Plantations (INNO): Zero-debt Sabah CPO producer. Volatile earnings, but a 50% payout policy ensures solid yield cushion.

• Bermaz Auto (BAUTO): Mazda + Kia distributor with large RM 300 m net cash. High payout ratio consistently backed by strong cash flow.

• Uchi Technologies (UCHITEC): High-margin EMS with export-led income and a near-perfect payout track record.

• British American Tobacco (BAT): Consumer staple giant with decades of >90% payout. Predictable cash flows and expanding vape lines support consistent dividends. However, share price has been on a steady decline in recent years, reflecting structural and regulatory challenges.

• Scicom MSC (SCICOM): Lean BPO/edu-tech operator. Strong FCF margins and sticky contracts keep payouts stable.

Use This for Your Income Strategy

Each of these five counters outperformed the EPF’s 5–6% dividend every year from FY2020 to FY2024. This table offers a foundational view for any dividend-focused Malaysian portfolio.

Finalise your P/E, ROE, and gearing numbers in Excel and I can help slot them into this summary for a complete cheat sheet.

Talking Points: What Makes These 5 Stand Out

Stock	Quick Anchor Fact	Where it fits the point
BAUTO	~15 % FY-24 yield, RM 300 m net cash	Shows how high payouts and cash surplus can coexist in a cyclical consumer name.
INNO	Debt-free, 10 % FY-24 yield, but profits track CPO prices	Illustrates both the income upside and the commodity-cycle risk.
UCHITEC	100 % payout, ROE > 50 %, USD revenues	Proves that export-tech can be a reliable cash machine—yet sensitive to FX shifts.
SCICOM	8 % yield, asset-light BPO model, sticky gov contracts	Adds service-sector stability; thinner daily trading volume highlights liquidity risk.
BAT	11 % yield, 90 %+ payout for decades, dominant market share	Provides a cash-rich consumer-staple leg, but faces regulatory and ESG overhangs.

Why These 5 Matter

• Consistency Over Time: Every one of the five beat the EPF dividend rate (≈ 5–6 %) in each of the last five years, even through Covid shutdowns and rate hikes.

• High-Yield Basket: An equal-weight portfolio would have delivered roughly 10.5 % cash per year—about double the EPF’s long-run average—while still trading on single-digit to low-teens P/Es.

• Financial Safety Net:
  • BAUTO, INNO, UCHITEC, SCICOM all sit on net cash.
  • BAT carries modest leverage, but its cigarette cash-flow comfortably covers the > 90 % payout ratio.

• Sector Diversification: Plantation, auto distribution, export tech hardware, BPO services, tobacco staples rarely move in lockstep, so one weak sector won’t torpedo the whole income stream.

Risks to Consider

Risk Theme	Who’s Most Exposed	What to Watch
Cyclical Earnings	INNO (CPO prices), BAUTO (auto demand)	Global palm-oil price trend; car-loan approvals, duty changes.
Limited Re-investment	BAUTO & UCHITEC (80–100 % payout), BAT (90 %+)	If margins compress, dividends may have to dip—or cash piles will run down.
Liquidity / Free-Float	INNO, SCICOM	Wider bid-ask spreads in risk-off markets; plan entries/exits accordingly.
External Policy / FX	BAT (excise tax & vape rules), UCHITEC (USD/MYR), INNO (export levies)	Monitor government budget speeches, FDA-style vape rulings, and ringgit swings.

“Taken together, these five counters show that high yield doesn’t have to mean high risk—so long as the balance-sheet is clean and the portfolio is spread across uncorrelated industries. Keep an eye on commodity prices, regulation and payout discipline, and this basket can keep out-earning the EPF without keeping you up at night.”

What Do You Think?

Have thoughts, suggestions, or a different take? I welcome discussion—feel free to share your views or correct me if I’ve missed anything.

This is just for sharing and discussion purposes only. It does not constitute any financial or trading advice.

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