Westpac Banking Corporation (ASX: WBC) is known for a good dividend stream and the group lately has been performing well based on resilient fundamentals. Given the generous yield and shortcomings of the sector seemingly over now, the stock has started looking interesting. The group was speculated to consider about $300 million stake in fund manager Pendal Group. It is out of the escrow and has had many brokers pitching for in the recent months. Westpac aims to have 95 percent of transactions to be made online or on mobile amid the fact that cash was disappearing from the economy at a very fast rate. The stock was trading at $29.490 as at August 10, 2018, market open, and has a current annual dividend yield of 6.43% which is fully franked. The dividend ex-date was May 17, 2018 for the most recent dividend paid and the dividend pay date was July 04, 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).
Commonwealth Bank of Australia (ASX: CBA) is introducing measures to ensure that the bank doesn’t suffer further reputational damage, and the company has acted upon to APRA report and is cutting pay of its current and former executives as the bank’s governance issues are in focus. In response to rapidly moving property and funding markets, rates on mortgage products have been changed by the likes of Commonwealth Bank. The Group has been able to increase its dividend, even whilst providing for any kind of costs, and strengthening all aspects of its balance sheet so that it can support customers and deliver returns for its shareholders into the future. The annual dividend yield of the stock is 5.72% which is fully franked. The stock was trading at a market price of $75.82 with a daily price change of $0.450 and a percentage change of 0.597% as at August 10, 2018, market open. Like WBC, CBA has also now emerged as a good stock to punt on.
AMP Limited (ASX: AMP) is under the financial sector and provides financial advisory and wealth management services based in Alfred Street, Sydney, Australia. The stock was trading at a market price of $3.445 with a daily price change of -$0.015 and a percentage change of -0.434% as at August 10, 2018, market open. The stock has seen a performance change of -36.04% over the past 12 months as it was slammed by the Royal Commission proceedings. With thinner margins, reputational damage and regulation in place the AMP’s profits have remained under pressure for at least 18 months. The net outflows have shot up to a first half record of $873 million in 2018. However, the financial sector giant has beaten market expectations of a $487 million by recording an underlying interim profit of $495 million. The stock has a dividend yield of 7.04%. With situation at hand, it might be better to wait before punting on AMP.
Rural Funds Group (ASX: RFF) is under the real estate sector and is a rural property investment related stock. Recently, JBS Australia Group and Rural Funds Group (managed by Rural Funds Management (RFM)) entered into a conditional agreement whereby RFM will become one of JBS’s main suppliers of grain fed cattle in Australia and the transaction is subject to normal terms and conditions, including Foreign Investment Review Board approval. JBS agreed to enter into a finance lease transaction of its five feedlots so that it can provide the adequate infrastructure and security for RFM’s cattle and which will be fed for an average of 120 days before being sold to one of JBS’s processing facilities for slaughtering. The company has announced the successful completion of its fully underwritten, 3 for 10 accelerated pro rata non-renounceable Entitlement Offer. The stock was trading at a market price of $1.975 and has seen a performance change of -4.68% in last one month. Nonetheless, the stock maintains a high dividend yield of 5.02%. This seems to be a good option to stick with.
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.
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