Which are the 20 hottest fully franked dividend stocks?

Let us look at top 20 hottest fully franked dividend stocks that have been broadly categorised as the Material and Energy sector, the Consumer Discretionary and Non-Discretionary Sector and the financial sector.

Material and Energy Sector

The resource sector did well throughout the pandemic. Companies like Fortescue Metals Group Ltd (ASX:FMG), Rio Tinto Ltd (ASX:RIO), BHP Group Ltd (ASX:BHP), Woodside Petroleum Ltd (ASX:WPL), Northern Star Resources Ltd (ASX:NST), Newcrest Mining Ltd (ASX:NCM), Santos Ltd (ASX:STO), are offering fully franked high-yield dividends, giving investors enough reasons to keep them on their watchlist.

Top ASX Fully Franked Dividend Companies, Data: Refinitiv, Price info as of 23 June 2021

Buoyed by the COVID-19 pandemic recovery, Australia's resource and energy exports are expected to reach new highs. The improved forecast reflects the continuous distribution of vaccines and the boost in Australia’s economic activity and trade. Strong gold, iron ore, and other commodity prices have prompted new investment plans, including the reopening of mines.

• Australia was the source of supply for China's strong iron ore demand. Australian players managed to meet the demand when COVID-19 created a roadblock for countries like Brazil, India, and South Africa to supply iron ore to meet demand. China is likely to remain reliant on Australian output for the foreseeable future.
• Gold is a safe-haven asset, and during the uncertainties of COVID-19, the demand for gold and gold stocks have skyrocketed, resulting in better performance of gold mining firms.
• Australia’s oil and gas industry, which plays an essential role in developing the country's economy, contributes significantly to the global oil and gas supply by producing and exporting liquefied natural gas, crude oil and condensate.

Commodity prices are supported by a resurgence in global industrial activity, which includes some of Australia's important exports. The prices of iron ore, coal, and oil all rose dramatically between the end of 2020 and the beginning of 2021.

As economies are fuelled by massive government and central bank backing, this increased optimism has led to predictions of a new commodities 'supercycle beginning in 2021. Many countries are anticipated to increase commodity-intensive infrastructure spending, particularly infrastructure plans tied to economies' ambitions to reduce carbon emissions.

New technology and products are being tested on a technical and commercial level, and more enterprises are gearing up toward sustainable production. Businesses are expanding their capabilities and goods, as well as investing in market-leading technologies and expanding their scale; this will be cushioned by the maturing markets for green technologies and products.

Consumer Discretionary and Non-Discretionary Sectors

The COVID-19 pandemic wreaked havoc on international trade, tourism, airline industry, retail, and service sectors.  In contrast, a few industries, such as healthcare, biotech, and household staples, stayed resilient in the face of the pandemic because they are always necessary, even during a recession.

Consumer Discretionary and Non-Discretionary stocks that have fetched relatively high and fully franked dividends include: Coles Group Ltd (ASX:COL), Wesfarmers Ltd (ASX:WES), Telstra Corporation Ltd (ASX:TLS), TPG Telecom Ltd (ASX:TPG), ComputerShare Ltd. (ASX:CPU) Woolworths Group Ltd (ASX:WOW), and Tabcorp Holdings Ltd (ASX:TAH)

Top ASX Fully Franked Dividend Companies, Data: Refinitiv, Price info as of 23 June 2021

While the social distancing norms and lockdowns proved detrimental for the hotel and entertainment industry in general, Tabcorp safely bypassed the downswing because the company's Lotteries & Keno and Wagering & Media businesses were more resilient. Significant investments to upgrade digital service modes have yielded significant results. Lotteries and Keno saw a gain in revenue and an increase in EBITDA. Wagering and Media sales increased in relation to the previous year. There was an increase in digital turnover and digital revenue. Tabcorp's digital customer base also increased significantly.

Another attractive non-discretionary sector for investors is the telecom sector. In the face of the coronavirus (COVID-19) crisis' mounting uncertainties, several of Australia's leading telecom stocks have stayed buoyant. Given the stay at home and work from home conditions, telecom services have become necessities difficult to cut down on.

Financial Sector

In the phase of recovery, half-year cash profits jumped by an average of 62 percent across the major four banks of Australia – Australia and New Zealand Banking Group Ltd (ASX:ANZ), National Australia Bank Ltd (ASX:NAB), Westpac Banking Corp (ASX:WBC), and Commonwealth Bank of Australia (ASX:CBA). As a result, dividends rebounded sharply, and lenders acknowledged they have extra capital that will likely end up in shareholders' pockets. The extra earnings resulted from asset sales and ramped up retailed earnings to combat situations of further distress.

Rising economic output, increasing housing prices, and declining unemployment are reasons to have positive outlooks about these banks. Other high-yield, fully franked dividend stocks to look at in the financial sector are Suncorp Group Ltd (ASX:SUN) and ASX Ltd (ASX:ASX).

Top ASX Fully Franked Dividend Companies, Data: Refinitiv, Price info as of 23 June 2021