Investors relying on continued and sustainable stream of income look for stocks with higher dividend yields. With this view, following stocks listed on ASX can be screened for dividend yield scenario and whether the same looks to be sustainable or not:
Commonwealth Bank of Australia (ASX: CBA): CBA traded at a market price of $75.02 (as at July 27, 2018 after market open) and has seen a daily price change of $0.070 and a percentage change of 0.094% a day before. The Group has been able to increase its dividend, while managing costs. It has also enhanced its balance sheet to support customers and aims to deliver better shareholders’ returns. The annual dividend yield of the stock is 5.75% which is fully franked. In the battle of mobile apps, the company seems to be beating its big four rivals and is emerging better post the Royal Commission.
Another gem in the banking sector is Westpac Banking Corporation (ASX: WBC), which traded at $29.38 (as at July 27, 2018 after market open), with annual dividend yield of 6.43% (fully franked). The ex-dividend date was May 17, 2018 for the most recent dividend paid while the dividend pay date was June 01, 2018. The company has reported a decent 1H FY18 performance with a profit of $4,198 million (an increase of 7 per cent as compared to 1HFY17). Its preferred cash earnings were up by 6 per cent. Westpac is beginning to pledge to be proactive in identifying vulnerable customers.
Australia and New Zealand Banking Group Limited (ASX: ANZ) traded at a market price of $29.410 (as at July 27, 2018 after market open) with a daily price change of -$0.010 and percentage change of -0.378% noted a day before. The annual dividend yield of the stock is 5.49% which is fully franked, and the most recent dividend declared was of 80 cents with ex-dividend date of May 14, 2018. ANZ is now offering discounts like $1,200 switching incentive and $1,000 conveyancing rebate for first-time buyers to increase its customer base.
National Storage REIT (ASX: NSR) traded at a market price of $1.715 (as at July 27, 2018 after market open) and has an annual dividend yield of 5.63% which is not franked. It has a 4.9 cents dividend amount to be released for which the ex-dividend date was June 28, 2018 and the record date was June 29, 2018. The dividend is however, not franked and the payable date for this dividend is August 29, 2018. The company has recently acquired Abacus property group for a transaction value of $24.85 million as at May 04, 2018, and has consistently grown dividends over the last five years.
WAM Research Limited (ASX: WAX) traded at a market price of $1.560 (as at July 27, 2018 after market open) and its investment portfolio has grown by 18.1% since inception and delivered returns with less volatility. This compares favorably to the S&P/ASX All Ordinaries Accumulation Index which rose by 9.4%. WAM has an annual dividend yield of 5.91% which is fully franked. The most recent dividend which was paid out in April 2018.
WAM Capital Limited (ASX: WAM) was lately seen to be trading at a market price of $2.4. The board of WAM is committed to pay an increasing stream of fully franked dividends to shareholders given the fact that the company is within prudent business practices and has sufficient profit reserves. The annual dividend yield for the stock is 6.38% which is fully-franked and the most recent dividend remained 7.75 cents for which the dividend pay date was in April 2018. Performance of portfolio that gives exposure to undervalued growth companies since inception has been 17.5% against comparable index performance of 8.5%.
G8 Education Limited (ASX: GEM) is a consumer discretionary dividend stock which was seen to be trading at a market price of $2.550. The stock has an annual dividend yield of 8.66% which is fully franked, and the most recent dividend was paid in March. The dividend yield for GEM looks a bit inflated given the performance challenges at the back of occupancy levels. The company has been speculated to be under acquisition radar.
Transurban Group (ASX: TCL) was trading at a market price of $11.85 as at market open on July 27, 2018 and has an annual dividend yield of 4.79% which is franked at 8.93%. The most recent dividend declared was at 28.00 c to be paid on August 10, 2018. The company has achieved significant growth since FY08 while consistently growing distributions. The company’s investment proposition is supported by its capital strategy with balancing distribution growth. Conditional on ACCC approval, Transurban has lately submitted final bid for WestConnex.
Telstra Corporation Limited (ASX: TLS) was trading at a market price of $2.75 as at market open on July 27, 2018 and has confirmed that there is no change to its capital management framework and expects its Capex to sales ratio in the range of 16-18% in FY19. Over the medium term, Capex to sales ratio is expected to be around 14%. Further, the group re-affirmed that the dividend for FY18 will be 22 cents per share but this is under a lot of scrutiny given the earnings downgrade and intense competition.
Dicker Data Limited (ASX: DDR) was trading at a market price of $3, and what resulted in further increase in improvements in the company’s balance sheet leverage is that the company continued to reduce working capital and debt requirements. The total dividend paid during the year FY17 was $26.3m or 16.4cps, an increase of 5.5% on FY16. The annual dividend yield for the stock is 5.75%. Whilst existing vendors also had a strong quarter, growth in sales was attributed from new vendors which were introduced during 2017.
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The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
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