5 ASX Dividend Stocks With Yields Over 6%

  • Nov 18, 2019 AEDT
  • Team Kalkine
5 ASX Dividend Stocks With Yields Over 6%

Dividend Yield: Dividend yield is a ratio that measures the dividends paid out to shareholders relative to the market value of the share. In other words, it is a method that calculates the cash flow received back each time an investor invests his money in equity. It is important to keep in mind that higher dividend paying companies are generally those that have lesser requirement of capital to reinvest back in the business for growth, as a result they pay out excess cash in the form of dividend.

Formula for dividend yield is mentioned below:

Dividend Yield= Dividends Paid/ Value of one share of stock

Below mentioned are some of the ASX listed stocks with dividend yields greater than 6%.

Navigator Global Investments Limited (ASX: NGI)

Catering to its global clients via wholly owned subsidiary Lighthouse Investment Partners, LLC, NGI is in the provisioning of investment management products as well as services.

Notice and Agenda of 2019 AGM: In order to pass some business resolutions, the company has scheduled to conduct its Annual General Meeting for 2019 on 28th November 2019. Following would be the key agendas of the meeting:

  • Financial statements and reports.
  • To accept remuneration report.
  • Re-election of Directors - Michael Shepherd and Fernando (Andy) Esteban.

Dividend Policy

  • Navigator Global Investments Limited possesses a policy of paying a dividend of 70% to 80% of the earnings before interest, tax, depreciation and amortization and impairment losses (EBITDA);
  • It added that the dividends would be unfranked; however, might have conduit foreign income credits attached;
  • In FY19, the company’s total dividend for the year stood at 17.0 US cents per share, while dividends in AUD cents per share stood at 24.4 for FY19;
  • At the current market price of $2.590 per share (as on 18 November 2019, AEST 01:53 PM), the annual dividend yield of the company stood at 9.08%;
  • In another update, the company announced its final dividend for the FY19 amounted to 9.0 US cents per share. The following picture provides an overview of Annual Dividend Yield:

Stock Performance: The stock of NGI was trading at a price of $2.590 per share on 18th November 2019 (AEST 01:53 PM), down 3.717% from its previous closing price. The company has a market capitalisation of $436.18 million. The total outstanding shares of the company stood at 162.15 million, and its 52-week low and high is $2.290 and $5.110, respectively. The return of the company declined by 15.41% in the time span of three months and witnessed a fall of 30.31% in six months.

IVE Group Limited (ASX: IGL)

IVE Group Limited (ASX: IGL) is engaged in designing across print, mobile and interactive media, printing of catalogues, magazines, marketing and corporate communications materials and stationery, data analytics, customer experience strategy, etc. 2019 Annual General Meeting of IVE Global Limited is scheduled to be held on 26 November 2019 in order to discuss the election and re-election of directors and remuneration and other reports.

Dividend: The company paid a fully franked dividend of 7.7 cents per share on ordinary fully paid shares on 24 October 2019. During FY19, dividend per share of company stood at 16.3 cents, with payout ratio of 71% of pro forma NPAT, up by 5.2% on the prior period.

Financial Highlights

  • During the year, revenue of the company went up by 4.1% on prior corresponding period and stood at $724.2 million. This was primarily driven by continued momentum across the Group with meaningful new client wins and effective cross sell, contract extensions, no material client losses. However, it was offset by bad debts in Kalido Asia.
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) and NPATA (net profit after taxes excluding amortization of customer contracts) witnessed an increase of 9.8% and 4.4% and stood at $80.4 million and $37.5 million, respectively.

Financial Performance (Source: Company’s Presentation)

Outlook: The company expects solid performance positions to generate strong free cashflow in FY2020. Its expectations of stabilisation in global pulp & paper markets would return the working capitals to normal levels. Following a period of heavy investment in several strategic growth initiatives, FY20 capital expenditure is expected to decrease to approximately $8-10 million.

Stock Performance: The stock of IGL was trading at price of $2.010 (AEST-2:13 PM) on 18 November 2019. As per ASX, return of stock of IGL witnessed a decline of 5.56% in the past 6 months but generated a return of 2.51% in the past 30 days. As on date, market capitalisation of the company stood at $302.34 million. In terms of valuation, it was trading at a P/E multiple of 9.710x, with annual dividend yield of 7.99%.

The Reject Shop Limited (ASX: TRS)

As on 18 November 2019 (AEST 02:16 PM), the market capitalisation of TRS, which is engaged in the retailing of discount variety merchandise, stood at $73.14 million.

FY19 Financial Performance (ended 30 June 2019)

  • The top management of the company addressed its shareholders in current AGM and stated that sales for the year went down by 0.8% to $793.7 million, where the positive sales impact of the net six stores opened in FY2019 and the net four new stores opened in FY2018, was more than offset by a disappointing comparable sales performance of -2.5%, impacted by weak trading in Western Australia, Queensland and the ACT.
  • The company generated earnings before interest and depreciation and amortization (EBITDA) of $18.2 million, a decrease of 57.6% on the previous corresponding period.
  • The company’s comparable store sales converted from -2.5% in the second half of FY2019 to +0.3% in the first 15 weeks of FY2020. This was mainly due to the execution of a plan, focusing on owning everyday low prices through leading branded products, great daily essentials and household general merchandise and new exciting products (refreshed regularly).

Outlook: The sales trajectory of the company has improved in comparison to the overall comp sales rate in the prior year. The favourable impacts of strategic as well as immediate tactical changes are anticipated to continue to benefit the underlying business earnings in the financial year 2020.

Stock Performance: The stock of The Reject Shop Limited was trading at $2.530 (AEST 2:41 PM) on 18 November 2019. As per ASX, the performance of the stock witnessed a rise of 12.44% in the last six months and an increase of 15.53% in the past 30 days. As on date, 28.91 million shares were outstanding, with annual dividend yield of 8.3%.

AMP Limited (ASX: AMP)

AMP Limited (ASX: AMP) is a provider of life insurance, superannuation, pensions and other financial services in Australia and New Zealand.

Dividend: The company declared a dividend of $1.0497 on AMPPA - CAP NOTE 3-BBSW+5.10% PERP NON-CUM RED T-12-21 for the quarter ending 22 December 2019, which is to be paid on 23 December 2019.

Successful Completion of Share Purchase Plan: AMP successfully completed its share purchase plan, with 83.8 million new issued to eligible applicants at an issue price of $1.60 per new share. A total of approximately A$134.1 million was raised under the SPP.

Financial Highlights

  • During the third quarter of 2019, AMP Capital continued to experience strong demand for its real asset’s investment capabilities, with strong infrastructure debt flows and commitments of US$6.2 billion received for its fourth infrastructure debt strategy;
  • Net cash outflows of the company stood at $1.9 billion and Australian wealth management AUM (Asset Under Management) increased to $133.2 billion;

Stock Performance: The stock of AMP was trading at $1.970, down by 2.475%, (AEST 02:50 PM) on 18 November 2019. As per ASX, the stock of AMP has witnessed a decline of 17.21% on q YTD basis but generated a return of 20.60% in the past 30 days. As on 18 November 2019, the market capitalisation of the company stood at $6.94 billion, with annual dividend yield of 6.93%.

Yancoal Australia Limited (ASX: YAL)

Yancoal Australia Limited (ASX: YAL), an energy sector player, is engaged into coal production activities.

Dividend/Distribution – YAL: For the half year to 30 June 2019, the company paid a dividend of 10.35 cents per share on ordinary fully paid shares on September 20, 2019.

Quarterly Report (period ended 30 September 2019)

  • The operational performance of the company remains on track to achieve the targets for 2019, including flat operating costs and saleable coal production of 35 million tonnes.
  • During the third quarter of September 2019, ROM coal production and saleable coal production went down by 4% and 5% from Q3 of 2018 and stood at 15.6Mt and 11.6Mt, respectively, while the attributable saleable coal production was up 2% year on year and stood at 8.4Mt.

Yancoal anticipates potential recovery of thermal coal prices in 2020. The company’s targets for 2019 remain unchanged and achievable, including approximately 35Mt of saleable coal production, ~ $62.50/t FOB for attributable cash costs and nearly $285 million attributable capital expenditure.

Stock Performance: The stock of Yancoal Australia Limited was trading at $2.990, up by 0.673% (AEST 3:10 PM) on 18 November 2019. As per ASX, the performance of the stock went down by 9.45% in the past 6 months and declined by 2.62% in the last one month. This led the stock price to trade towards its 52-week low of $2.617 The market capitalisation of the company is $3.92 billion, with annual dividend yield of 8.86%.


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