From FMG to WBC, NAB: Take a look at these ASX dividend stocks - Kalkine Media

September 05, 2022 03:40 PM AEST | By Aditi Sarkar
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Highlights

  • Dividend stocks are companies allocating their profits to shareholders on a regular basis as dividends.
  • It is not mandatory for the companies to pay dividends to its investors.
  • Dividend stocks are a source of passive income, hedge against risk and inflation, and are less prone to market volatility.

Accumulating higher returns and booking huge profits from the share market is the primary goal of every investor. However, appreciation in share value is not the only way of making money in the stock market as you can also invest in dividend stocks and it may help you in getting a consistent source of income.

What are dividend stocks?

Dividend stocks are companies that constantly distribute profits to their shareholders as dividends. Large-cap companies generally pay dividends; however, it is not compulsory for the companies to pay dividends and the decision to pay dividends depends solely on the management.

Why should you look for dividend stocks?

Dividend stocks are generally less risky than non-dividend stocks. Since these are issued by well-established companies, these stocks often have lesser growth potential.

Let us know more about dividend stocks.

  • Earning dividends on a constant basis is a great source of passive income. It is like getting interest while depositing money for a longer term.
  • Dividend stocks diversify the risk potential of your portfolio. They do not lose value during a market crash or harsh market movements.
  • Dividends reaped from a particular stock can be used for reinvesting into the same stock or other stocks.
  • They offer dual benefits in terms of dividends and value appreciation of stock.
  • Investing in high dividend growth stocks helps to fight against inflation
  • Dividend stocks are less prone to market volatility as they are issued by well-established and stable firms.

In this article, we at Kalkine Media® will discuss some of the best dividend-paying stocks from ASX.

Fortescue Metals Group Ltd (ASX:FMG)

Fortescue Metals specialises in infrastructure and mining assets. It is an iron ore mining company operating infrastructure and supply chain projects. 

The company reported record iron ore shipments of 49.5 million tonnes (mt) for the June 2022 quarter and 189.0mt for FY22, higher than full-year guidance. Fortescue ended the quarter with a strong cash balance of US$5.2 billion. The company is advancing a portfolio of green energy projects, manufacturing initiatives and technology developments. Its expected expenditure for FY23 is US$600 - US$700 million.

During the financial year, the company reported a fully franked dividend of AU$1.21 per share, representing a 75% payout of FY22 NPAT.

BHP Group Ltd (ASX:BHP)

BHP Group Limited is a resources company that produces commodities such as copper, iron ore, nickel, coal, and potash.

In its annual report of FY22, BHP demonstrated solid operational performance against a challenging background. It also reported a record EBITDA of US$41 billion at a 65% margin. The company witnessed a 26% surge in underlying attributable profit and a 25% surge in underlying basic earnings per share.

Recently, the company announced that it will pay a dividend amount of AU$2.55 per security for the six months ended 30 June 2022.

Rio Tinto Ltd (ASX:RIO)

Rio Tinto is a mining and metals company specialising in Iron Ore, Aluminum, Copper, and Minerals. The company’s products include Aluminum, copper, iron ore, borates, salt and titanium dioxide, and lithium diamonds.

In 2022 half-year results, Rio Tinto reported underlying EBITDA of AU$16 billion, 34% underlying ROCE and declared AU$4.3billion dividends to shareholders. However, the company’s consolidated sales revenue declined by 10%, and underlying EBITDA declined by 26% compared to the previous corresponding period.

In July, RIO announced a dividend amount of AU$3.837 for the six months ended 30 June 2022.

Australia and New Zealand Banking Group Ltd (ASX:ANZ)

ANZ offers various types of banking and financial products and services. Recently, the company completed a retail shortfall bookbuild concluding the final stage of the Entitlement Offer, under which the company has raised approximately AU$3.5 billion.

During the third quarter of FY22, the company’s lending volumes grew by AU$2.0 billion (3% annualised). Markets revenue was AU$435 million for the quarter, an increment of 7%.

The company’s recent announcement was in June in which it reported a dividend distribution of AU$0.80 for the previous quarter.  

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy is an energy company with production, development, and other segments. Following are the updates from the company’s June quarter

  • Production of 33.8 MMboe - 60% increment from Q1 2022
  • Sales volume of 35.8 MMboe - 51% increment from Q1 2022
  • 44% increment in revenue compared to the previous quarter
  • Completion of merger with h BHP’s petroleum business
  • Started trading on the New York Stock Exchange and the London Stock Exchange in June

In its half-year results announced on 01 Sep 2022, the company reported rewarding its shareholders with a 109 US cents per share fully franked dividend.

Westpac Banking Corp (ASX:WBC)

Westpac is a banking company providing different types of banking and financial services. The company operates through different segments providing services to consumers, businesses, and institutions.

Westpac plans on becoming a net zero bank by transitioning electricity to 100% renewables by 2025 and reducing emissions in the supply chain. By 2030, the company targets to reduce its financed emissions and become the transition partner of choice.

On July, the company announced a dividend amount of AU$0.5972 per share for the previous quarter.

National Australia Bank Ltd (ASX: NAB)

National Australia Bank Limited provides financial services through its different segments such as Business and Private Banking, Personal Banking, Corporate and Institutional Banking etc.

In the third quarter of FY22, NAB reported AU$1.85 billion of unaudited statutory net profit and AU$1.80 billion of unaudited cash earnings. Its cash earnings grew by 6% compared to the previous corresponding period, and group common equity increased by 11.6%.

In July, NAB announced a dividend amount of AU$0.7212 for the previous quarter.

 


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