Issuers that consistently distribute dividends are increasingly seen as a crucial buffer for investors amid the current pressures on stock prices.
Muhammad Wafi, Head of Research at Korea Investment and Sekuritas Indonesia, highlighted that companies offering high dividend yields not only provide potential passive income but also play a vital role in mitigating the risk of declining stock prices. “A high dividend yield functions as a cushion when stock prices fall due to market volatility,” he stated on Wednesday (March 25, 2026).
In the face of global uncertainties, investors are strategically re-evaluating their portfolios, shifting focus toward issuers with robust fundamentals and a proven history of consistent dividend payouts. This discerning approach aims to secure returns in an unpredictable economic climate.
Wafi noted that several sectors continue to exhibit solid performance. The banking and consumer sectors, for instance, have predominantly met or even surpassed market expectations. This strong showing is primarily driven by stable credit growth and resilient public purchasing power, indicating a healthy domestic demand environment. “Conversely, commodity sectors like coal have generally underperformed market consensus due to the normalization of global prices,” he added, reflecting the cyclical nature of these industries.
Delving deeper, Wafi identified major banking stocks such as PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) and PT Bank Mandiri (Persero) Tbk. (BMRI) as prime choices for investors. These companies are not only backed by their strong fundamentals but are also renowned for regularly distributing dividends with attractive yields. In contrast, the commodity sector, particularly coal, is facing mounting pressure. Issuers like Bukit Asam (PTBA) and Adaro Energy (ADRO) have recorded performance that generally falls below market consensus, a trend consistent with the global normalization of coal prices after a period of significant surges in prior years. Meanwhile, the automotive sector demonstrates remarkable resilience amidst market dynamics. Wafi views PT Astra International Tbk. (ASII) stock as particularly compelling, underpinned by its diversified business operations and its potential for stable dividend distributions.
Echoing this sentiment, Gani, an Equity Research Analyst at OCBC Sekuritas, previously emphasized that dividends can serve as an appealing option for investors when stock price movements are unpredictable. “In a volatile market, dividends can offer a quite attractive alternative return for investors,” he remarked on Wednesday (March 25, 2026). He further explained that, overall, the actual dividend distributions by issuers this year remain largely within market expectations, signaling relatively robust corporate performance despite various global challenges.
Several sectors are still considered cornerstones for a strategic dividend play. State-owned banking stocks, for example, remain highly attractive due to their consistent performance and competitive dividend payout ratios. Additionally, telecommunication issuers like PT Telkom Indonesia (Persero) Tbk. (TLKM) are also on investors’ radar, propelled by strong cash flow generation and a dependable track record of dividend distribution. Conglomerate stocks such as PT Astra International Tbk. (ASII) are also drawing interest, thanks to their business diversification that effectively safeguards performance stability. On the other hand, coal issuers warrant attention, primarily because they continue to benefit from relatively high commodity prices in recent times, providing ample scope for attractive dividend distributions.
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