- Dividend yield indicates how much dividend a company is paying relative to its share price.
- Blue chips are generally preferred for dividend investing due to their robust financials, leading to a consistency in dividend payouts.
- AMC shares are trading at a decent dividend yield of 4.03%.
Dividend investing is increasingly becoming popular among long-term investors as dividends not only generate a regular source of income but also add to the margin of safety on the initial investment in stocks.
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Not all companies regularly pay dividends due to fluctuations in their profit figures. Therefore, when it comes to dividend investing, blue chips are generally preferred due to their robust financials leading to a consistency in dividend payouts. Let us have a look at three blue-chip ASX stocks and how much dividend they pay.
- Amcor CDI (ASX:AMC)
Amcor is a global packaging company that develops rigid and flexible packaging for a wide range of products such as medical devices, food & beverages, personal care products, etc. The company has a market capitalisation of AU$23.78 billion and its share price has delivered a negative return of 3.67% this year to AU$16.01, as of 21 April 2022.
AMC shares are trading at a decent dividend yield of 4.03%, having paid its last interim dividend of AU$0.168 per share on 15 March 2022. All last five payouts going back till March 2021 have been over AU$0.15 per share.
- Reecee Limited (ASX:REH)
Established in 1920, Reecee is the largest ASX-listed supplier of plumbing and bathroom supplies. It also supplies other home equipment such as air conditioners. The company has a market capitalisation of AU$11.25 billion and its share price has disappointed investors this year, plunging 37.92% to AU$17.35 by 21 April 2022.
REH shares are trading at a dividend yield of 1.11%. In CY21, the company paid a total of AU$0.18 per share dividend. The company has paid a fully franked interim dividend of AU$0.075 per share in CY22 so far.
- Cochlear Limited (ASX:COH)
Cochlear is an Australian medical device manufacturer that primarily designs implants such as hybrid electro-acoustic implant to aid people with hearing disability. The company has a market capitalisation of AU$14.9 billion and its share price has inched 6.02% to the last closing price of AU$236.16 on 21 April 2022.
COH shares also pay regular dividends, but the yield is less compared to many other ASX 200 shares, at 1.29%. The last three payouts have been consecutively increasing – from AU$1.15 in April 2021 to AU$1.4 in October 2021 to AU$1.55 in April 2022 (per share).
Dividend yield reveals how much dividend a company is paying relative to its share price; therefore, the actual yield may also get affected with the changes in the share price and not the actual dividend payout. Therefore, investors need to take a holistic approach before selecting a high-quality dividend paying company and not just rely on the dividend yield ratio.