These are three ASX-listed dividend stocks with grossed-up yields over 5%

January 21, 2022 09:58 AM AEDT

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These are three ASX-listed dividend stocks with grossed-up yields over 5% — Image source: Inside Creative House,Shutterstock

Highlights

Despite the COVID-19 pandemic, there have been companies delivering dividend yield above 5%.

Such stocks have managed to provide income sources to investors amid sluggishness in the economy.

COL, WAM and TLS are three stocks which investors can consider.

Paying consistent dividends is no mean feat. It becomes all the more praiseworthy considering the slowdown in an economy due to the COVID-19 pandemic. However, there have seen companies which have offered a yield of above 5%.

Dividend stocks have become more popular in a scenario when other incomes have been negatively impacted by sluggishness in the economy.

(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 three ASX-listed dividend stocks with grossed-up yields over 5%:

Coles Group Ltd (ASX:COL)

Coles Group is an ASX-listed supermarket specialist, which is engaged in the distribution of consumer products, including fresh food, groceries, household goods, liquor, fuel and financial services through its store network and online platforms.

The company was among the few that distributed dividend to shareholders in the year 2020 without any cut. Last year, the retailer paid 57.5 cents per share in dividends, higher than 2019’s total of 61 cents per share. On Thursday’s closing price of AU$16.31, the company’s trailing dividend yield stands at 3.74%. When grossed-up with the full franking on offer, the yield stands at 5.34%.

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WAM Capital (ASX:WAM)

WAM Capital is a listed investment company. It provides investors with exposure to actively managed diversified portfolios of undervalued growth companies, which are generally small-to-medium-sized industrial companies listed on the ASX.

The company has kept its distribution consistent over past few years. In 2018, the annual dividend stood at 15.5 cents per share. On Thursday’s closing price of AU$2.22, the company’s trailing dividend yield stands at 6.95%. When grossed-up with the full franking on offer, the yield stands at 9.93%.

Telstra Corporation Ltd (ASX:TLS)

Telstra Corporation comes under the telecommunications services sector and is a telecommunications Carrier. The company gives a provision of telecommunications and information services, including mobiles, internet, and pay television.

Since 2019, the company has consistently paid 16 cents per share in annual dividends. On Thursday’s closing price of AU$4.15, the company’s trailing dividend yield stands at 2.88%. When grossed-up with the full franking on offer, the yield stands at 5.54%.