- The financial ratio that gauges the amount of cash dividends paid out to shareholders concerning the market value per share is known as a dividend yield.
- Sectors like oil & gas, utilities, banks & financials, basic materials, and healthcare & pharmaceuticals considered to pay high dividend yield.
- Few companies like AusNet Services have been paying dividend constantly even after going through pandemic crisis.
What is a Dividend?
A dividend is a profit shared by a company with its shareholders. Shareholders are eligible to get the dividend as long as they hold the stock in the company. This is considered a reward paid by the company to its shareholders for putting in money, and it can be paid as cash or in the form of additional stocks.
Some industries are observed to pay out regular dividends. These include oil & gas, utilities, banks & financials, basic materials and healthcare & pharmaceuticals. REIT (real estate investment trusts) and MLP (master limited partnerships) are also considered top dividend players.
Source: © Djbobus | Megapixl.com
What is a Dividend Yield?
Calculation of dividend yield:
Dividend Yield Ratio = Dividend Per Share/Market Value Per Share
Now let us take a look at top stocks which provide dividend yield over 5%.
GDI Property Group Ltd (GDI)
Australian REIT GDI Property Group (ASX:GDI) focuses on management, ownership, refurbishment, leasing and syndication of office properties.
For the half-year ended in December 2020, GDI had a fall of 28% in its revenues to AU$26 million, and its net profit also decreased by 90% to AU$5.8 million. It’s property segment revenues fell 45% to AU$14.3 million, while funds from operations -per share -fell 40% to AU$0.03.
Even then the company has been paying the dividend constantly, and the percentage of dividend yield has increased significantly. On June 17, 2021, the company announced to pay a dividend of AU$0.038 dividend and a dividend yield of 6.86% to its shareholders. GDI's share price is increased 26% in the last five years. That is not up to the market return price but adding a dividend amount will give the shareholders a market-beating return.
With an annual yield of 6.73%, shares of GDI closed at AU$1.15 each, up 1.32% on 25 June 2021.
AusNet Services Ltd
AusNet Services Ltd (ASX:AST), an Australian company that operates energy infrastructure business in the segments like electricity distribution, electricity transmission, mondo, and gas distribution.
For the fiscal year ended 31 March 2021, AusnetServices Ltd’s revenues dropped to AU$1.92 billion, recorded a fall of 3%. Its net income raised 4% to AU$302.1 million. Having almost the double market cap of AU$6.93 billion from its peer Spark Infrastructure Group, the company has an annual dividend yield of 5.32% as of May 20, 2021 and announced to pay a dividend of AU$0.047 on June 24, 2021 to its shareholders. It’s payout ratio is 118.8%.
With an annual yield of 5.33%, AST’s scrip closed at AU$1.78 each, up 2.298% on 25 June 2021.
Source: © Eamesbot | Megapixl.com
Spark Infrastructure Group
Spark Infrastructure Group (ASX:SKI), a publicly-owned investment manager, invests in regulated utility infrastructure markets globally. The Sydney-based group invests in growth opportunities in renewables and adjacent sectors, distribution and transmission networks, investing in infrastructure for the future. The company has a market cap of AU$3.87 billion.
The company had revenue of AU$272.9 million, which increased almost 1 percent for the fiscal year ended in Dec 31, 2020. On March 15, 2021, it paid a dividend of AU$0.065 and a dividend yield of 6.22%. Since 2015, it paid a highest yield of 7.52% on Sept 13, 2019.
With an annual yield of 6.02%, Spark's share was trading at AU$2.24 each, up 1.818% on 25 June 2021.
Vicinity Centres Re Ltd
Vicinity Centres (ASX:VCX) is the second-largest listed manager of Australian retail property. The company has a retail asset under management of AU24 billion across 63 shopping centres. It manages 31 assets on behalf of strategic partners, out of which 28 are co-owned by the group.
VCX's revenues decreased 9% to AU$583.2 million for the six years ended on Dec 31, 2020. The company had a net loss of AU$394.1 million. On June 21, the company announced to pay a dividend of AU$0.066 and a yield of 6.12% to its shareholders. It has been paying a regular dividend of over 5% yield since June 2015. It paid the highest 12.31% yield in March 2017.
With an annual yield of 6.06%, VCX's shares were trading at AU$1.65 each, down 0.603% on 25 June 2021.
.Also Read: 5 ASX stocks with dividend yield over 8%