5 Hot Dividend Stocks On The ASX

Summary

  • ASX 200 edged up by 231 points in April 2021 amid the booming macro-economic settings.
  • Dividend stocks provide regular payout along with price appreciation.
  • While Australian banks are a popular choice amidst investors, other sectors are also offering handsome dividends.

The Australian financial sector is on a growth trajectory after recent and recovering economic numbers caused consumer confidence to pick up the steam. ASX 200 climbed 231 points in April 2021 and the surge in investors’ activity is fanning the momentum for various ASX-listed companies.

Aussies continue to focus on consistent income measures and are scanning for dividend stocks even when the pandemic scenario looms in the global backdrop. This investment approach not only allows the investors to relish the stock price appreciation but also receive handsome payouts by the dividend paying company.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

For years, the big four banking stocks have remained top priority for dividend investors, offering juicy dividend yield and less volatility. However, it appears that Australian dividend setting is much more robust that anticipated, with stocks from diverse industries offering attractive yield and income security.

Let us look at few ASX-listed hot stocks for dividends.

Fortescue Metals Group Limited (ASX:FMG)

  • Australian iron ore company with extensive holdings in Western Australia’s Pilbara region.
  • FY21 interim dividend of A$1.47 paid on 24 March 2021; Annual dividend yield of 10.93%.
  • Shares traded at A$22.60 each on 30 April 2021.

The iron ore giant achieved iron ore ship of over 42 million tonnes during the quarter ended 31 March 2021. This was in line with its shipments made during the third quarter last year. FMG also indicated that significant rainfall impacted its operations in the Pilbara. However, Eliwana mine’s commissioning enabled the Company to increase its total ore mined and processed.

In January 2021, the Eliwana mine transitioned to the FMG Operations to commission as well as ramp up the ore processing facility. Average revenue for the March 2021 quarter increased by 17% from the previous quarter to US$143/dry metric tonne.

APA Group (ASX:APA)

  • Australian energy infrastructure company owning and operating electricity and natural gas assets.
  • FY21 interim dividend of A$0.24 paid on 17 March 2021; Annual dividend yield of 5.1%.
  • Shares traded at A$10.03 on 30 April 2021.

The Company reconfigured OGPP’s two sulphur absorbers in the December Quarter FY21, which led to improved production rates. OGPP production is nearing an average of 45 TJ/day.

As per the FY21 full year guidance, production volume may range between 2.7- 2.9 MMboe and sales volume could be between 2.9-3.1 MMboe.

RELATED READ: 3 Australian Utilities Stocks Under The Spotlight – AGL, SKI and APA

Aurizon Holdings Limited (ASX:AZJ)

  • Australia's largest rail freight operator transporting Australian commodities like coal and bulk commodities.
  • An interim dividend of A$0.144 paid on 31 March 2021; annual dividend yield is 7.37%.
  • Shares traded at A$3.75 on 30 April 2021.

Total above rail volume (60.7 metric tonnes) during the March Quarter was 4% lower than the previous corresponding period. The Company indicated that the higher bulk volumes were offset by lower coal volumes.

Significantly, coal volumes were 6% down compared to pcp, owing to adverse weather impact on mine production, Stanwell contract cessation and soft consumer demand.

GOOD WATCH: The Stocks in Action || What sort of coal volume did Aurizon forecast in FY2021?

On the positive side, the Australian coal continues to find alternative markets after China imposed ban. The Company’s Coal volume expectations remain unchanged for FY2021 at 200 to 210 metric tonnes.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Bulk volumes for the Company were 5% up over the pcp, driven by iron ore and acceleration of railings for mineral resources.

Harvey Norman Holdings Limited (ASX:HVN)

  • Australian multinational retailer of furniture, electronics, electrical products.
  • Interim dividend of A$0.2 to be paid on 3 May 2021; annual dividend yield is 7.27%.
  • Shares traded at A$5.27 on 30 April 2021.

HVN’s net profit after tax and non-controlling interests for the half year ended 31 December 2020 was up by a significant 116.3% from pcp to $462.03 million. The Company effectively transformed its retail business to suit the digital landscape.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

JB HI-FI Limited (ASX:JBH)

  • Australia’s leading retail company, specialising in consumer goods for home entertainment.
  • Interim dividend of A$1.8 was paid on 12 March 2021; annual dividend yield of 5.84%.
  • Shares traded at A$46.4 on 30 April 2021.

The Company continues investment in supply chain and online operation. Significantly, during the half year ended 31 December 2020, upgrades were made to the Group’s websites along with expansion in the delivery and warehouse options.

ALSO READ: Did the March quarter updates for 5GN, JBH, CPT bring cheer to the market?

Total sales figures for JB HI-FI Australia during the March Quarter FY21 saw sales growth of 10.4%. In New Zealand, the performance marked significant improvement from the previous corresponding period, with total sales of 16% in the third quarter of FY21 against negative 3.3% in Q3 FY20.

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