Miners unseat Telstra as the new dividend stars

3 min read | September 12, 2018 09:57 AM AEST | By Team Kalkine Media

The Blue-chip companies like BHP Billiton and Commonwealth Bank of Australia are set to declare dividends with payable dates in September as US 63c and $2.31 respectively. AMP Limited also has to offer the bonanza dividend.

Telstra in the telecommunication services has disappointed retail income investors, where mining giant BHP Billiton at 5.5 per cent fully franked would pique interest at $28 and targeting a 6 per cent fully franked yield the mining company Rio Tinto would find support in a sell-off at $65.

The decline in dividend yield is directly attributable to lower net profit after tax which has slipped by 8.9% in FY18. Also, the company has been consistently paying same dividend yield of 31 cents for the past three years, reflecting no dividend growth.

Many a super funds which are self-managed, obviously represented on the registers of retail investor-oriented stocks and are already in the pension phase in the country Australia.

As quoted by Telstra, to execute the transformation in a competitive market for telco services, the company needed to increase capital expenditure, after skipping the dividend as was hinted by the company in 2018 annual reports.

The Telstra stock traded at $3.180 with -12.14% change in performance over the past 12 months as at September 12, 2018 (AEST 18:42).

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for Top 25 Dividend Stocks For 2018.

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