Win Big with Investment in Dividend Shares

Win Big with Investment in Dividend Shares

Australian economy is tackling the challenging scenario in terms of growth scenario, job numbers, inflation levels, while facing the global trade war effects. In lieu of this, the RBA has slashed interest rates thrice this year, currently hovering around 0.75%. Market analysts are further eyeing rate cuts with the mounting fears of global recession.

With falling interest rate, dividend shares become an attractive opportunity for the investors as compared to bonds and other income-generating assets. Let us take a look at a few ASX best dividend stocks.

Let us first acquaint you with dividend shares.

Dividend Shares

Dividends are the part of the company profits and earnings that the company pays to its shareholders as a reward for holding the company shares and bearing the risks. Such companies offering a dividend to its shareholders on a regular basis are said to have a share capital composition of dividend shares.

For a company to pay dividends to its shareholders, it is required to achieve profit out of which a certain percentage amount of money is distributed to the shareholders. Generally, large companies with a good performance track record and stability in overall organization distribute their profits to the shareholders.

The companies paying dividends are not bound to pay dividends at a fixed ratio. The rate of dividend payment can vary at each interval of payment, and the shareholders have equal chances to earn high dividends (fuelled with the company’s high profits) as well as bearing loses (as a consequence of the company’s loses).

The shareholders investing money in dividend shares are at the dual advantage of

  • earning dividends from their shareholding, and
  • earning capital gains with the increasing value of the company shares held by them.

In the Australian context, the fall over the past decade in the interest rate is majorly attributable to a decline in the Australian economy’s potential growth rate and an increase in risk aversion of households and firms.

We shall now look at the performance of few ASX listed dividend stocks which have continued to provide a significant amount of dividend yield to their shareholders over considerable period.

Alumina Limited (ASX: AWC) –  10.66% Annual Dividend Yield

With a strategy to invest worldwide in bauxite mining and alumina refining, Alumina Limited has provided an annual dividend yield of 10.66% to its shareholders.

On 12 November 2019, the AWC stock traded at a price of $2.425, down by 1.02% (3:17 PM AEST), with a daily volume of ~ 1.8 million and a market capitalization of approximately $ 7.06 billion.

The stock has a 52 weeks high price of $ 2.810 and a 52 weeks low price of $2.070 with an annual average volume of ~14 million. Over the past three months, the AWC stock has increased by 8.52%.

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Southern Cross Media Group Limited (ASX: SXL) – 8.29% Annual Dividend Yield

One of Australia’s leading media companies with reach to more than 95% of the Australian population through its radio, television and digital asset, Southern Cross Media Group Limited has provided an annual dividend yield of 8.29%

On 12 November 2019, the SXL stock traded at a price of $0.910, down by 2.7% (3:17 PM AEST), with a daily volume of ~ 0.96 million and a market capitalization of approximately $ 719.03 million.

The stock has a 52 weeks high price of $ 1.430 and a 52 weeks low price of 0.805 with an annual average volume of ~ 2.08 million. In the past five days, the SXL stock has increased by 4.47%, while the YTD return has been -5.08%.

Harvey Norman Holdings Limited (ASX: HVN)  – 7.75% Annual Dividend Yield

With its key interests into integrated franchise, retail, digital enterprise and property, Harvey Norman Holdings Limited has an annual dividend yield of 7.75%.

On 12 November 2019, the HVN stock was trading at a price of $ 4.220, down by 0.94% (3:17 PM AEST), with a daily volume of ~ 0.99 million and a market capitalization of approximately $ 5.31 billion.

The stock has a 52 weeks high price of $ 4.667 and a 52 weeks low price of $ 2.925 with an annual average volume of ~ 4.01 million. Over the past six months, the HVN stock has increased by 9.68%, while offering decent YTD return of 37.8%.

AMP Limited (ASX: AMP) 7.09% Annual Dividend Yield

Provider of superannuation, pensions, life insurance and other financial services across AU and NZ, AMP Limited offers services and solutions to help the retail and institutional customers realise their financial ambitions. AMP has an annual dividend yield of 7.09%.

On 12 November 2019, the AMP stock was trading at a price of $1.965, down by 0.51% (3:17 PM AEST), with a daily volume of ~ 5.19 million and a market capitalization of approximately $ 6.79 billion.

The stock has a 52 weeks high price of $ 2.680 and a 52 weeks low price of $ 1.570 with an annual average volume of ~ 16.72 million. Over the past month, the AMP stock has increased by 22.67%.

Whitehaven Coal Limited (ASX: WHC)8.31% Annual Dividend Yield

Australia’s largest independent coal producer and the leading coal producer in North West New South Wales, Whitehaven Coal Limited has an annual dividend yield of 8.31%.

On 12 November 2019, the WHC stock was trading at a price of $ 3.200 down by 5.05% (3:17 PM AEST), with a daily volume of ~ 0.103 billion and a market capitalization of approximately $ 3.46 billion.

 The stock has a 52 weeks high price of $4.774 and a 52 weeks low price of $ 2.990 with an annual average volume of ~ 5.29 million. Over the past five years, the WHC stock has increased by 155.37%, while the YTD return stands at -15.78%.

Spark Infrastructure (ASX: SKI) – 7.64% Annual Dividend Yield

With the ownership of leading essential service infrastructure businesses to meet Australia’s future energy needs, Spark Infrastructure has an annual dividend yield of 7.64%.

On 12 November 2019, the SKI stock was trading at a price of $ 2.050, up by 0.985% (3:17 PM AEST), with a daily volume of ~ 6.4 million and a market capitalization of approximately $ 3.45 billion.

The stock has a 52 weeks high price of $ 2.555 and a 52 weeks low price of $ 2.000 with an annual average volume of ~5.9 million. Over the past ten years, the SKI stock has increased by 71.27%.

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Disclaimer

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