Investors hunting for dividend growth stories in 2025 have no shortage of options, as recent reports spotlight a range of companies in Malaysia and the UK that are not only increasing payouts but also demonstrating robust business fundamentals. On September 9, 2025, two key articles shed light on this trend: one highlighted a list of ten Malaysian companies with impressive records of rising dividends, while the other detailed the strong half-year results and dividend hike of UK-based Gamma Communications.
Let’s start in Malaysia, where the search for “dividend gems” centers on companies with a proven ability to grow their dividends per share. According to Dr Wealth, IHH Healthcare Berhad stands out as a leading international private healthcare group headquartered in Kuala Lumpur. IHH’s dividend per share has been growing steadily, supported by a strategy of expanding its hospital network through both organic growth and strategic acquisitions. Recent additions include Prince Court Medical Centre in Malaysia, Island Hospital in Penang, and facilities in Turkey and India. With the healthcare sector buoyed by an aging population and the company’s consistent financial performance, prospects for IHH remain bright.
In the financial sector, Hong Leong Bank Berhad has made headlines for doubling its dividends per share from RM0.50 to RM0.96—a 100% increase—thanks to strong growth in loans and financing portfolios. The bank’s focus on key segments such as mortgages, auto loans, and SME financing has driven up interest income and, by extension, overall revenue. RHB Bank Berhad, another major player, has also seen its net profit surge from diverse income streams, including both fund-based and non-fund-based income. This diversity supports a prudent payout ratio and a resilient growth path for dividends.
Hong Leong Financial Group Berhad, the parent company of Hong Leong Bank, has delivered a compound annual growth rate (CAGR) of 15.83% in dividends per share over the past five years. The group’s success is attributed to its diversified interests spanning banking, insurance, and capital markets. As Southeast Asia’s economy remains vibrant, analysts see further room for growth in HLFG’s dividends.
PPB Group Berhad, a conglomerate with interests ranging from agribusiness to film exhibition and distribution (notably through the Golden Screen Cinemas brand), is another Malaysian company benefiting from diversified revenue streams. The film exhibition and distribution segment, in particular, has contributed to the group’s growing dividends per share.
Dialog Group Berhad, a key energy sector player, has evolved from engineering services to owning strategic midstream assets such as the Pengerang Deepwater Terminals. Despite a slight dip in its latest fiscal year dividends per share due to a one-off impairment charge on certain investments, Dialog still managed to post a free cash flow margin of 31.2%. The company’s decision to scale back or exit less viable projects is seen as a prudent move, and expectations are high for dividends to resume their upward trajectory if fundamentals hold steady.
Gas Malaysia Berhad, the sole natural gas distributor in Peninsular Malaysia, operates under a regulated framework that includes a gas cost pass-through mechanism. This structure ensures stable and growing dividends, as it shields the company from volatile natural gas prices. The business model, with its long-term concessions and steady demand, provides reliable revenue and predictable payouts for shareholders.
Hong Leong Industries Berhad, another member of the Hong Leong Group, leverages its consumer products division—including the manufacturing and distribution of Yamaha motorcycles and ceramic tiles—to drive dividend growth. Motorcycles remain a key mode of transportation in Malaysia, and the company’s strong position in this market, coupled with trends like the gig economy, bodes well for future prospects.
AEON Credit Service (M) Berhad, a subsidiary of Japan’s Aeon Financial Service, commands over 20% market share in motorcycle financing and is expanding into digital banking. Its integration with the broader AEON Group retail ecosystem allows for cross-selling of financial products and access to a large customer base. This synergy, along with its agile business model, has helped AEON Credit grow its dividends and maintain a strong outlook.
Kotra Industries Berhad, a pharmaceutical and healthcare company, has steadily grown dividends through expanding its product offerings under brands like Axcel, Vaxcel, and Appeton. Despite fierce competition from Western pharmaceutical giants, Kotra has carved out a niche in the Malaysian market and continues to build on its reputation for quality and innovation.
On the other side of the globe, Gamma Communications in the UK reported a stellar first half for the period ending June 30, 2025. According to Shares Magazine, Gamma posted a 12% increase in revenue to £316.6 million and a 14% year-on-year rise in adjusted EBITDA to £70.9 million. The company also boosted its interim dividend by 14% to 7.4p per share, rewarding shareholders for their loyalty. This comes on the back of a completed £45.1 million share buyback, following a £27.3 million buyback in 2024.
Gamma’s CEO, Andrew Belshaw, attributed the company’s strong performance to its German business, which was bolstered by recent acquisitions of Starface and Placetel. “Our German business, bolstered by our recent acquisitions (Starface and Placetel) has performed particularly strongly, while the performance in the UK has been resilient in spite of a continuing challenging macro-economic backdrop for SMEs,” Belshaw said. He emphasized that mergers and acquisitions remain a key tool for complementing organic growth, supported by a robust business model with high recurring revenues and strong cash generation.
While Gamma’s UK operations face challenges due to economic conditions affecting small and medium-sized enterprises, the company is implementing growth initiatives and cost reductions to offset these headwinds. Analysts at Berenberg noted that, despite some investor concerns about future growth and profitability in the UK, German trading remains positive and there is little risk to full-year 2025 guidance. The consensus for full-year 2025 adjusted EBITDA is between £139.4 million and £143.1 million, with adjusted earnings per share expected to land between 89.8p and 93.9p.
Across both Malaysia and the UK, the common thread is clear: companies with diversified business models, prudent management, and a commitment to shareholder returns are not only weathering economic turbulence but are also delivering rising dividends. For investors, these stories offer a glimpse into how disciplined strategies and adaptability can translate into real, growing income—whatever the market throws their way.
