BHP, WBC, WES: 3 ASX dividend stocks to watch out for in May

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BHP, WBC, WES: 3 ASX dividend stocks to watch out for in May

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BHP Group Limited (ASX:BHP) shares
Image source: © Marchmeena | Megapixl.com

Highlights

  • Dividend stocks have recently become even more tempting as the COVID-19 pandemic has fuelled income insecurity.
  • Investors constantly look for dividend-paying stocks that might provide a consistent income stream.
  • In this regard, BHP is currently paying a 10.7% trailing dividend yield.
  • Dividend stocks have recently become even more tempting as the COVID-19 pandemic has fuelled income insecurity.
  • Investors constantly look for dividend-paying stocks that might provide a consistent income stream.
  • In this regard, BHP is currently paying a 10.7% trailing dividend yield.

A dividend is a regular payment made by a firm to its shareholders. As a result, investors are constantly looking for dividend-paying stocks that might provide a consistent stream of income. Dividend stocks have recently become even more tempting as the COVID-19 pandemic has fuelled income insecurity. However, investors should have a solid strategy in place to get the most out of dividend stocks.

In this article we will talk about three ASX dividend stocks to watch out for in the coming weeks.

Image Source: © 2022 Kalkine Media ®

Data Source- ASX website dated 17 May 2022 at 2.05 PM AEST

BHP Group Limited (ASX:BHP)

BHP Group is one of the most prominent ASX miners and it has a diverse portfolio of mineral projects, including potash, metallurgical coal, nickel, and iron ore, among others. The company has a current market capitalisation of AU$229.37 billion. BHP made a net profit of AU$11.3 billion on revenue of AU$56.92 billion in FY21.

BHP has become a star dividend payer due to rising commodity prices, currently paying a 10.7% trailing dividend yield.

During the recent reporting season, BHP issued a record first-half dividend of AU$1.50 per share, fully franked. This dividend was issued in conjunction with increased revenues, earnings, and profit.

Moreover, BHP's proposed merger with Woodside Petroleum Limited (ASX: WPL) would be "a tax-effective income potential for BHP shareholders."

Also Read: RIO, MIN, WES: A look at ASX lithium stocks paying dividends

Source: © Iqoncept | Megapixl.com

Westpac Banking Corp (ASX:WBC)

Westpac Banking Corporation is Australia's oldest financial services group. Its services include consumer, business and institutional banking and wealth management services.

Last week (on 9 May 2022), Westpac Banking Corporation (ASX:WBC) announced a drop in cash earnings for the six months ended March 2022 due to increased bad debt provisions and competitive pressure on net interest margins.

Westpac's profit fell to AU$3.1 billion, down 12% from the previous equivalent period. It was, nevertheless, up 71% of the prior half.

However, the company's cash earnings of approximately AUAU$3.1 billion and interim fully franked dividend of 61 cents per share exceeded market forecasts.

But the main reason to be optimistic is that the bank is still aiming for an AU$8 billion cost base in FY2024, down from AU$13.3 billion in FY 2021 (including AU$2.3 billion in one-offs).

It is now expected that BHP will pay a fully franked dividend of AU$1.23 per share in FY2022, AU$1.55 per share in FY 2023, and AU$1.80 per share in FY 2024.

Wesfarmers Ltd (ASX:WES)

Wesfarmers Ltd, a chemical and fertiliser retailer, has recently piqued the interest of investors due to its acquisition of Australian Pharmaceutical Industries Ltd (ASX:API).

For decades, Wesfarmers has been a blue-chip favourite with ASX investors. Wesfarmers is a dividend-paying stock as well. Since the 1980s, it has returned a percentage of its income to investors.

Wesfarmers has a competent management team and a stable balance sheet. Despite the uncertain economic climate, the company's Bunnings brand is expected to continue to draw customers. Furthermore, it is likely that the Wesfarmers dividend would increase to AU$1.81 per share fully franked in the 2023 financial year.

Also Read: Waiting for Macquarie’s next dividend? Here’s what you should know

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