- Income investors are always on the lookout for high-dividend yield stocks that can boost their income.
- These shares provide a steady stream of income over time in the form of dividend.
- However, high yields generally are due to a fall in stock price owing to the risk of the dividend being cut.
Income investors are always on the lookout for high-dividend yield stocks that can boost their income. Owing such stocks make all the more sense in the current times when both domestic and global economies are recovering from the negative impact of the coronavirus pandemic.
These shares provide a steady stream of income over time in the form of dividend. Investors use the parameter of dividend yields to assess the stock which fits their needs.
However, a high yield should not be the only criterion while buying stocks. High yields generally are due to a fall in stock price owing to the risk of the dividend being cut.
Suncorp Group Ltd (ASX:SUN)
Suncorp Group is an insurance group and the company’s segments include personal insurance, commercial insurance, general insurance, banking products and life insurance.
Based on Thursday closing’s share price of AU$12.60, the dividend yield stands at 4.8%. The board of Suncorp announced a final dividend of 40 cents per share, a special dividend of 8 cents per share, and AU$250 million on-market share buyback.
The company announced a 4% revenue fall to AU$14.2 billion in its recently released FY21 results. Cash earnings surged 42% to AU$1.1 billion while net profit after tax (NPAT) was up 13% on the prior corresponding period to AU$1.0 billion.
The company recently announced the opening of its capital notes 4 offer to syndicate brokers and institutional investors.
Meanwhile, the company’s shares have delivered a year-to-date (YTD) return of nearly 28%.
Source: Dividend shares provide a steady stream of income over time. © Phillipminnis | Megapixl.com
Scentre Group (ASX:SCG)
Scentre Group is the owner and operator of Westfield shopping centres across Australia and New Zealand.
In its half-year financial results for the six months ending 30 June 2021, the retail property group announced a 28% rise in operating profit to AU$460.1 million on the previous corresponding period. Statutory profit stood at AU$400.4 million. Funds from operations (FFO) increased 28.4% to AU$463.4 million.
Scentre’s board announced a dividend of 7 cents per share, compared to a nil dividend in the prior corresponding period.
The company clocked in AU$23.4 billion in annual sales despite coronavirus-induced restrictions. Based on the latest share price of AU$2.99, the yield stands at 4.7% and 5.4%.
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