Image Source: © 2021 Kalkine Media®
- When available at a bargaining price, buying blue-chip stocks has proven a winning formula for many successful investors.
- Fortescue Metals’ iron ore shipments stood at 45.6 million tonnes for the first quarter of FY22, representing a record for a first quarter.
- Westpac has improved mortgage growth and witnessed better momentum in its institutional and business portfolios for the full year 2021.
Adding companies with significant and well-established underlying businesses is often considered a safety measure to balance the risk of an investment portfolio. When available at a bargaining price, buying such stocks has proven a winning formula for many successful investors. Given their extensive operations and stable cash flows, these companies are better placed financially against market downturns.
Interestingly, dividend further adds to the total return, thereby ensuring investors with an income stream. Let us look at five blue-chip stocks on the ASX with a high dividend yield.
Fortescue Metals Group Limited (ASX: FMG)
For the first quarter of FY22 ended 30 September 2021, the Company’s iron ore shipments stood at 45.6 million tonnes, representing a record for a first quarter and an increase of 3% from Q1 FY21. FMG has also embarked on an industry-leading goal of attaining net-zero Scope 3 emissions by the next two decades by 2040.
The Company’s guidance for FY22 remains unchanged with FMG anticipating iron ore shipments in the range of 180-185 million tonnes.
Suncorp Group Limited (ASX: SUN)
A leading provider of banking, general insurance, life insurance and wealth management solutions, Suncorp Group continues to grow its home loan book. Recently, data from APRA (Australian Prudential Regulation Authority) for FY21 highlighted Suncorp as one of the leading insurance groups that dominate other general insurance providers.
The firm recorded a total business gross earned premium of over AU$10 million in the period. The Group recently wrapped up the divestment of its 50% joint venture interest in RACT Insurance Pty Ltd in a deal valued at AU$83.75 million.
Wesfarmers Limited (ASX: WES)
Wesfarmers recently entered into a scheme implementation deed (SID) with the No. 1 drugstore chain, Australian Pharmaceutical Industries Limited (ASX: API). Wesfarmers proposes to acquire all shares in API through a scheme of arrangement for AU$1.55 per share.
However, at the decisive moment, Woolworths Group (ASX: WOW) made a AU$613 million approach for API, surpassing an already-agreed buyout from Wesfarmers.
Wesfarmers currently owns a 19.3% shareholding in API after acquiring 95.1 million shares in October this year.
Source: © 2021 Kalkine Media®
Westpac Banking Corporation (ASX: WBC)
Westpac reported a net profit of AU$5,458 million for full-year 2021, while cash earnings increased by 105% to AU$5,352 million. The bank has registered improved growth in mortgages and better momentum in its institutional and business portfolios.
Westpac has also announced its intention to conduct an off-market buy-back of up to AU$3.5 billion.
Dexus (ASX: DXS)
In its September 2021 quarterly update, Dexus highlighted growth in its funds management business, which now has 20 vehicles across AU$25.7 billion.
The Company has finalised the acquisition of APN Property Group. During the quarter, in the Dexus office and Dexus industrial portfolios, it also wrapped up 95 leasing transactions across 129,043 square metres. Rent collected remained high at around 98% for the September quarter.
The Company retains its FY22 guidance of delivering distribution per security growth of not less than 2%.