Income investors buy shares mainly for dividends on offer.
Dividend stocks provide a steady source of income.
Income investing has picked up all the more as interest rates offered by banks offer low returns.
Investors have taken up income investing in a big way in the recent past. Income investors buy shares mainly for dividends on offer, which provide a steady source of income. Income investing has picked up all the more as interest rates offered by banks offer low returns. So, investors are always on the hunt for stocks with attractive dividend yields.
What is a dividend yield?
The dividend yield (in percentage terms) is a financial ratio (dividend/price) that reveals how much a firm pays out in dividends every year relative to its share price.
(However, high dividend-paying shares are not good always. A stock’s dividend yield might be on the higher side due to a significant fall in its stock price, implying financial trouble that could impact its ability to deliver future dividends)
On this note, let’s discuss 10 ASX-listed dividend stocks with over 7% yield as of 22 April 2022.
Magellan Financial Group Ltd (ASX:MFG)
Magellan Financial Group is an Australian investment manager focusing on global equities and global-listed infrastructure.
In the half-year report for the 2022 financial year, Magellan’s board declared a partially franked interim dividend of 110.1 cents per share. This represents a 13.4% fall from the 97.1 cents announced in the prior comparable period.
MFG has a dividend yield of 14.35%.
Fortescue Metals Group (ASX:FMG)
Fortescue Metals Group is a global iron ore miner. It is engaged in the exploration, development, production, processing and sale of iron ore.
In the first half of FY22, the company paid an interim dividend of 86 cents per share. It represents a 70% payout of the first-half net profit after tax (NPAT).
FMG carries a dividend yield of 14%.
Platinum Asset Management Ltd (ASX:PTM)
Platinum Asset Management is an Australia-based investment manager which specialises in managing international equities.
The company has forked out 22 cents per share in fully franked dividends over the past year.
PTM’s dividend yield sits at 11.86%.
Yancoal Australia Ltd (ASX:YAL)
Yancoal Australia is into the production of metallurgical and thermal coal required for usage in the steel and power generation industries.
In its FY21 financial results, the company’s board declared an FY21 total dividend allocation of AU$930 million, with AU$0.5000 per share (unfranked) as a final dividend and AU$0.2040 per share (unfranked) as a special dividend.
YAL has a dividend yield of 10.44%.
BHP Ltd (ASX:BHP)
BHP Group is a global resources company with key operations as an iron ore miner and oil player.
BHP Group declared a record dividend in the first half of the financial year 2022 and announced an interim dividend of US$1.50 per share, up from US$1.01 a share declared a year ago.
BHP has a dividend yield of 9.89%.
Rio Tinto Ltd (ASX:RIO)
Rio Tinto Group is an Anglo-Australian multinational company, which is the world's second-largest metals and mining corporation.
Rio Tinto announced the highest-ever dividend to its shareholders in its half-yearly report for the financial year 2022 (1HFY22). The company’s board declared a US$16.8-billion full-year dividend, equivalent to 1,040 US cents per share and 79% of underlying earnings.
Rio has a dividend yield of 9.56%.
Pendal Group Ltd (ASX:PDL)
Pendal Group is an Australian company engaged in the provision of investment management services.
The company’s last two dividends totalled 42 cents per share. It was an increase on the 37 cents per share Pendal forked out in 2020.
PDL has a dividend yield of 7.81%.
IVE Group (ASX:IGL)
IVE Group is engaged in the marketing, communications and print businesses in Australia.
In its financial results for the six months ended 31 December 2021, IVE Group has declared an interim dividend of 8.5 cents per share fully franked.
IGL has a dividend yield of 7.60%.
Super Retail Group Ltd (ASX:SUL)
Super Retail Group is an Australia-based company which owns and operates a portfolio of retail brands across Australia.
In its financial results for the first half of the financial year 2021, the company announced a fully franked 27 cent interim dividend, down from 33 cents.
SUL has a dividend yield of 7.58%.
Perenti Global Ltd (ASX:PRN)
Perenti Global is a mining services company which is engaged in providing exploration and production drilling services to its mining clients.
Perenti is a regular dividend-paying company with a dividend yield of 7.28%.
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