AUS
NZ
UK
CA
USA
IND
The recent outbreak of Coronavirus (COVID-19) has created turbulence across the global markets. The consequent correction in various markets occurred due to panic amongst the investors. As per the early indicators, the major economies across the world might encounter degrowth in the production and GDP, impacting the earnings of domiciled companies. Stock market participants anticipate the forward earnings and try to influence the price as per the intrinsic valuation of the company. During a bear market, investors choose to exit the stocks with lower profits or losses, which create a selling spree across the market. Thus, the stock prices slump and the correction in the stock market continues. Thus, businesses with regular dividend payment would depict a higher dividend payout ratio during the ongoing correction in the market. We would be discussing some high yield dividend stocks along with their recent updates.
Bendigo And Adelaide Bank Limited (ASX: BEN)
Bendigo And Adelaide Bank Limited operates with a wide range of banking and financial services like retail banking, mortgage distribution etc. The business provides several banking activities like margin lending, business banking and commercial finance, invoice discounting, funds management, treasury etc.
H1FY20 Business Highlights for the Period ended 31 December 2019: BEN declared its six months results, wherein the business posted its total income on a cash basis at $814.7 million, reporting a growth of 1.4% from the previous corresponding period. Statutory net profit of stood at $145.8 million, down 28.2% on a y-o-y basis on account of an addition of a pre-tax software impairment of $87.1 million followed by an increase in amortization expenses of $19.0 million. Customer growth, during the year, stood at 4.9% on pcp terms, despite sectorial weakness. NPS stood at more than 27.2, higher than the average of the major banks.
The Board of directors announced a dividend of $0.3100 per share while the payment date was fixed as 31st March 2020. Dividend payout ratio stood robust at 104.7% on an earnings per ordinary share basis.
Dividend Highlights (Source: Company Reports)
Stock Update: The stock of BEN closed at $6.74 with a market capitalization of $3.38 billion on 13th March 2020. The stock has corrected 31.71% and 41.24%% in the last three months and six months respectively. The stock is available at a price to earnings (P/E) multiples of 10.00x on its trailing twelve months (TTM) EPS basis. At current market price, the stock has a dividend yield of 10.15% on annualized basis.
Amcor PLC (ASX: AMC)
Amcor PLC is engaged in the development and manufacturing of rigid and flexible packaging for a wide range product like food, beverage, pharmaceutical, medical devices, home and personal care. On 10th March 2020, the company informed that it has filed with the U.S. Securities and Exchange Commission the Forms S-1 and 8-K in relation to offers to be commenced at a later date by Amcor subsidiary issuers to exchange certain privately-placed outstanding unsecured notes.
H1FY20 Operational Highlights for the Period ended 31 December 2019: AMC declared its half-yearly results, wherein the company posted net sales of US$6,183.8 million, increasing from US$4545.6 million in the previous corresponding period. During the period, the business reported decent volume growth within its flexible segments across North America, Europe, Middle East and Africa, which was offset by unfavorable mix and lower volumes in the Latin America Flexibles and Specialty Cartons businesses. Net income before income tax stood at US$325.9 million, witnessing an improvement from US$301.8 million in the previous corresponding period.
H1FY20 Income Statement Highlights (Source: Company Reports)
The company declared an unfranked dividend of US$0.1150 per equity share and announced its payment date to be 24 March 2020. Annualized dividend yield of the stock stands at 5.15%.
Stock Update: The stock of AMC last traded at $11.10 with a market capitalization of $18.26 billion on 13th March 2020. The stock has corrected by 27.78% and 24.95% in the last three months and six months respectively. The stock is available at a price to earnings multiple of 27.61x on TTM EPS basis.
Treasury Wine Estates Limited (ASX: TWE)
Treasury Wine Estates Limited operates in international winery business and provides a portfolio of luxury, premium and commercial wines to its consumers.
Recently, with a press release, the company provided an update regarding the impact of ongoing Coronavirus (COVID-19) outbreak wherein, the company informed that the business is not likely to meet its previous guided EBITS growth between 5% and 10% for FY20. TWE expects that the decline in the consumption across Chinese territory will have a negative impact on its business performance.
Other Updates: The company also announced that from 1st July 2020, Tim Ford will be elevated to the position of CEO corresponding to the retirement of Michael Clarke from the same position.
1HFY20 Operational Highlights: TWE came up with its half-year results, wherein the company reported
its revenue of $1,551.2 million, up 0.9% on pcp. NPAT came in at $229.2 million, depicting a growth of 5% on pcp. The business reported solid performance within Asia, ANZ and EMEA primarily due to growth in the Luxury and Masstige segments. However, the company reported slow execution across the US, due to unfavorable market scenario.
Dividend Update: The Board of Directors announced a fully franked dividend of $ 0.200 per ordinary share, with a payment date of 3rd April 2020, depicting a growth of 11% from the previous corresponding period. The dividend payout ratio stood at 62.7%. At current market price, the stock has an annualized dividend yield of 4.33%.
Stock Update: The stock of TWE closed at $9.53 with a market capitalization of $6.65 billion on 13th March 2020. The stock has corrected by 43.58% and 48.12% in the last three months and six months respectively. The stock is available at a price to earnings multiple of 16.11x on TTM EPS basis.
BHP Group Limited (ASX: BHP)
BHP Group Limited is a mining company which is engaged in the exploration of several minerals like coal, iron ore, copper and manganese ore etc.
The Board has announced a fully franked dividend of US$0.6500 per ordinary share, payable on 24th March 2020. In H1FY20, the business reported a shareholder return of US$3.3 billion in dividends. During the half, the company reported a dividend payout ratio of ~63%.
Operational Highlights for H1FY20 (Source: Company Reports)
Financial Highlights for H1FY20: BHP declared its six-months results, wherein the company reported free cash flow of US$3.7 billion and underlying EBITDA stood at US$12.1 billion, growing 15% on pcp terms. The period witnessed stable production volumes and reported successful ongoing drilling program at Oak Dam. Underlying basic earnings per share stood at 102.6 US cps, up 46% on pcp terms.
Stock Update: The stock of BHP closed at $26.72 along with a market capitalization of $77.56 billion on 13th March 2020. Outstanding shares stood at 2.95bn. The stock is available at a price to earnings multiple of 9.92x on TTM EPS basis and it has an annualized dividend yield of 8.09%.
G8 Education Limited
G8 Education Limited (ASX: GEM) offers consumer discretionary services like childcare serviced across Australia. On 10th March 2020, the business reported change in one of the director’s interest wherein Brian Hilton Bailison acquired 10,000 fully paid ordinary shares at a consideration of $12,900.
Recently, the company declared a fully franked dividend of $ 0.0600 per ordinary share, with a payment date of 6th April 2020.
FY19 Financial Highlights: Total revenue stood at $922.2 million, up 7.5% on y-o-y basis. Profit before tax decreased to $86 million, declining from $103 million due to higher depreciation expenses. The business reported its net profit at $62.6 million, down from $71.8 million in FY18.
Stock Update: The stock of GEM closed at $1.10 along with a market capitalization of $513.1 million on 13th March 2020. Outstanding shares stood at 460.18 million. The stock is available at a price to earnings multiple of 8.16x on TTM EPS basis. On an annualized basis, at a current market price, the company reported a dividend yield of 9.64%.
