5 Dividend Stocks that you need to look at- AMC, OZL, BEN, SUN, TWE

  • February 21, 2020 02:46 PM AEDT
  • Team Kalkine
5 Dividend Stocks that you need to look at- AMC, OZL, BEN, SUN, TWE

Dividend plays an important role when investors choose to park their funds in stocks. Companies declare dividend out of their profits. A loss-making company usually do not declare any dividend, as the business is not generating any earnings for its investors. Even ace investors like Peter Lynch and Warren Buffet look for the dividend history of a business before making investments.

In this article, we are discussing few dividend stocks with impressive annual dividend yields and their earnings update.

Amcor plc (ASX: AMC)

Amcor plc is a global packaging company engaged in the development and production of flexible and rigid packaging containers. Its products are catered towards food, personal care, beverage, home, pharmaceutical and medical device industries.

Q2FY20 Financial Highlights - Unfranked Dividend of US$0.1150

AMC declared its December quarter results, wherein the company reported net sales of US$3,043.1 million, as compared to US$2,285.4 million in previous corresponding period. Operating income during the quarter stood at US$272.3 million, up from US$221.5 million in the same period a year ago. Net income stood at US$187.8 million, representing an improvement from US$140.6 million in previous corresponding period.

The Board of Directors declared an unfranked dividend of US$0.1150 per ordinary share with a payment date of 24 March 2020.

Interesting Read: Growth Synergies for Packaging Giant, Amcor

Stock Update: The stock of AMC was trading at $15.440 on 21 February 2020 (AEDT 12:56 PM), up 0.586% from its previous close, with a market capitalisation of $24.62 billion. The stock has generated positive returns of 4.14% and 3.65% in the last three months and six months, respectively. The stock has delivered an annualised dividend yield of 4.45%.

OZ Minerals Limited (ASX: OZL)

OZ Minerals Limited is an Australia-based modern mining company, which focuses on the exploration of copper and gold. On 20 February 2020, the company reported that one of its Director named Rebecca J. McGrath has acquired 4,000 ordinary shares at a price consideration of $10.12 per share.

FY19 Operating Highlights - Fully Franked Dividend of $0.1500

OZL announced its FY19 operational highlights for the period ended 31 December 2019, registering net revenue of $1,107 million, which came slightly lower from $1,117 million in FY18. The decline in revenue can be attributed to factors including lower copper & gold sales, higher gold price, realised losses on gold hedges and lower TCRCs.

Underlying EBITDA came in at $462.4 million, compared with $540.4 million in FY18, on account of higher freight and site administration expenditure, rising insurance premiums and restructuring costs. However, underlying EBITDA margin stood robust at 42%, on the back of consistent strong operating performance at Prominent Hill delivering a segment EBITDA of $587 million.

The business reported operating cash flows of $511 million, up 14% on a y-o-y basis, driven by lower tax payments after the company’s transition to progressive instalments in FY18.

The Board of Directors announced a fully franked dividend of $0.1500 per ordinary share, with a payment date of 26 March 2020.

Stock Update: The stock of OZL was trading at $9.990 on 21 February 2020 (AEDT 01:28 PM), down 0.299% from its previous closing price, with a market capitalisation of $3.25 billion. The stock has generated positive returns of 8.56% in the last six months respectively. At current market price, the stock has delivered a dividend of 2.3% on an annualised basis.

Bendigo and Adelaide Bank Limited (ASX: BEN)

Bendigo and Adelaide Bank Limited provides an array of financial services like retail banking, and mortgage distribution. On 18th February 2020, the company announced a $250 million institutional share placement (fully underwritten) and a non-underwritten SPP (share purchase plan) of ~$50 million.

The proceeds are planned to be directed towards –

  • Supporting growth that the company is experiencing in its residential mortgage business;
  • Boosting balance sheet;
  • Providing an increased buffer above APRA’s “unquestionably strong” CET1 capital ratio requirements.

H1FY20 Operational Highlights - Fully Franked Dividend of $0.310

BEN announced its half yearly results for the period ended 31 December 2019, wherein statutory net profit came in at $145.8 million, a decline of 28.2% on a y-o-y due to the inclusion of a pre-tax software impairment of $87.1 million and higher amortisation expenses of $19.0 million.

The company posted its total income on a cash basis at $814.7 million, depicting a growth of 1.4% on pcp. The business reported a strong customer growth of 4.9% on pcp terms, despite a challenging macro environment.

The Board declared a fully franked dividend of $0.3100 per share, with a payment date of 31st March 2020.

Stock Update: The stock of BEN was quoting at $10.025 on 21 February 2020 (AEDT 01:39 PM), up 0.25% from its previous closing price, with a market capitalisation of $5.21 billion. The stock delivered a negative return of 6.02% and 7.92% in the last three months and six months, respectively. At current market price, the annual dividend yield of the stock stood at 6.6%.

Suncorp Group Limited (ASX: SUN)

Suncorp Group Limited is engaged in provisioning of banking, wealth and other financial products. On 17 February 2020, the company informed that one of its directors named Christine Frances McLoughlin acquired 700 ordinary shares at a value consideration of $70,000.

H1FY20 Financial HighlightsInterim Fully Franked Dividend of $0.26

SUN declared its half year results for the period ended 31 December 2019, wherein the company registered reported net profit after tax of $642 million, up 156.8% from $250 million in the same period a year ago.

The Board declared a fully franked dividend of $0.26 per ordinary share for the six months ended 31 December 2019, with a payment date of 31st March 2020.

Stock Update: The stock of SUN was trading at $12.460 on 21 February 2020 (AEDT 01:41 PM), with a market capitalisation of $15.55 billion. The stock has delivered a negative return of 6.78% and 7.47% in the last three months and six months, respectively. At current market price, the annual dividend yield of the stock stood at 5.68%.

Treasury Wine Estates Limited (ASX: TWE)

Treasury Wine Estates Limited is a wine distributor, which has a portfolio of luxury wines.

H1FY20 Financial Highlights - Fully Franked Dividend of $0.2000

TWE declared its half-yearly results for the period ended 31 December 2019, wherein the company reported revenue from ordinary activities of $1,551.2 million, depicting a growth of 0.9% on pcp terms.

The company reported net profit of $211.4 million, which declined 0.9% on a y-o-y basis. The business witnessed strong growth across Asia, ANZ and EMEA regions, driven by Luxury and Masstige business growth. However, the business encountered a loss of execution momentum and challenging US wine market conditions were a setback to Americas regional performance.

The Board declared a fully franked dividend of $0.2 per share related to a period of six months ended 31 December 2019, with a payment date of 3rd April 2020.

Stock Update: The stock of TWE was trading at $11.915 on 21 February 2020 (AEDT 01:52 PM), down 1.772% from its previous closing price, with a market capitalisation of $8.73 billion. The stock has corrected 34.36% and 33.39% in the last three months and six months, respectively. At current market price, the annual dividend yield of the stock stood at 3.3%.


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