- Increase in the inflation rate can impact the purchasing power of an individual. Thus, it reduces the chance of investors purchasing their favourite dividend stocks.
- Cheap dividend stock is such stock that, if traded diligently, can offer big income to investors in the long run.
- AZJ, HVN, CLW, AWC, PDL are a few dividend stocks under AU$10.
The Australian Bureau of Statistics published a report recently that stated in over 12 months period to September 2021, the consumer price index increased by 0.8%.
The increase in the inflation rate reduces the purchasing power of the money to purchase any product or stock. Hence, there could be an occasion where investors are not capable to buy dividend stocks because of the increased inflation rate.
Keeping this in mind, we have filtered dividend stocks from ASX 200 list that are available for below AU$10, which we can explore while looking for dividend stocks. The advantage of a cheap dividend stock is that it can offer big income to investors in the long run.
Let us look at few cheap dividend stocks and see their recent developments.
Aurizon Holdings Limited (ASX:AZJ)
Aurizon Holdings Limited is the largest rail freight operator in Australia. The Company transports over 250 million tonnes of Australian commodities every year, connecting miners, primary producers, and industry with international and domestic markets. It offers integrated freight and logistics solutions across a wide national rail & road network, navigating Australia.
AZJ is a player within ASX 200 and has been a consistent dividend payer since 2012.
In FY2021, AZJ reported a slight drop of 2% in revenue to AU$3,019 million. Underlying EBITDA improved by 1%. Statutory NPAT improved marginally from AU$605 million in FY2020 to AU$607 million in FY2021.
On 22 October 2021, AZJ signed a deal with Macquarie Asset Management, on behalf of its managed funds and client, to acquire One Rail Australia for AU$2.35 billion.
The stock closed a tad down at AU$3.420 per share today.
Harvey Norman Holdings Limited (ASX:HVN)
Retailing Company Harvey Norman Holdings has primary activities like integrated retail, franchise, property and digital enterprise. HVN is a player within ASX 200 and is also a consistent dividend payer since 2012.
In FY2021, the Company reported an increase of AU$512.46 million in EBITDA to AU1.457 billion compared to the previous corresponding period. Reported PBT of AU$1.183 billion, up AU$521.24 million from FY2020. Total system sales revenue increased by $1.263 billion to AU$9.721 billion.
The stock closed a tad higher at AU$5.130 per share today.
Charter Hall Long Wale REIT (ASX:CLW)
Real estate giant Charter Hall Long Wale REIT is a key player in ASX 200 index and has consistently provided dividends since 2017.
In FY2021, CLW reported a 3.2% rise in operating earnings to AU$159.0 million. Statutory profit for the period was AU$618.3 million. During the period, CLW announced AU$1.4 billion of new property acquisitions, which improved portfolio quality, sector diversification and boosted the quality & diversification of tenants.
On 20 September 2021, Charter Hall Long Wale REIT announced that CLW and a Charter Hall managed trust on behalf of Host-Plus Pty Limited signed a Scheme Implementation Deed with ALE Property to acquire 100% Stapled Securities of ALE Property.
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On 24 September 2021, CLW announced the acquisition of Toyota Distribution Centre, Larapinta QLD.
On 9 November 2021, the stock closed at AU$4.850 per share.
Alumina Limited (ASX: AWC)
Alumina Limited is a leading Australian player on ASX and OTC market in the US. It invests in worldwide in bauxite mining, alumina refining and selected aluminium smelting operations via its 40% ownership of Alcoa World Alumina & Chemicals.
It is also a key player in ASX 200 and has been consistent in providing dividends since 2015. In 1H FY2021, the Company reported a statutory NPAT of US$73.6 million and declared an interim dividend of 3.4 US cents per share.
On 1 October 2021, the Company announced that it has signed a binding term sheet with FYI Resources Ltd (ASX:FYI) for development activities to produce high-purity alumina. Alcoa of Australia Limited is a component of the AWAC JV, owned 60% owned by Alcoa Corporation and 40% by Alumina Limited.
The stock closed 1.056% down at AU$1.875 per share today.
Pendal Group Limited (ASX:PDL)
Pendal Group Limited is an independent global investment management business that provides investment returns for its clients via active management. PDL is also a major player in ASX 200 and has been consistent in providing dividends since 2012.
In FY2021, the Company reported a 25% growth in the underlying NPAT to AU$165.3 million. Average FUM increased by 14% to AU$107.9 billion. The total dividend for FY2021 increased by 11% to 41 cents.
On 5 November 2021, Pendal Group announced its results for the twelve months to 30 September 2021 and reported a 42% increase in NPAT to AU$164.7 million. Underlying PAT increased 25% to AU$165.3 million. The Board declared a final dividend of 24 cents per share.
The stock PDL closed 1.169% higher at AU$6.920 per share today.
The Above dividend stocks are players of ASX 200 and are trading below AU$10 on ASX. Thus, can be considered while looking for low-cost dividend stocks.