Three mid-cap ASX stocks with more than 5% dividend yield

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Three mid-cap ASX stocks with more than 5% dividend yield

 Three mid-cap ASX stocks with more than 5% dividend yield
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Summary

  • Dividend investing is focused on ensuring a consistent income stream in the form of dividends. 
  • Mid-cap stocks often have low volatility compared to small-cap stocks and offer greater returns over large-cap stocks. 
  • Investors chasing dividend yield should be cautious and should consider the overall company performance.  

The popularity of dividend investing has grown, with investors wary of market volatility that could wipe off their gains amassed over a duration. As opposed to growth investing that is focused on capital appreciation, dividend investors chase the consistent income stream offered in the form of regular dividend payout. 

As a result, investors often find themselves sitting on the fence when choosing between growth stocks and dividend stocks. However, mid-cap stocks offering regular dividend incomes have emerged as a lucrative option for many investors looking for a golden mean. 

Source: Copyright © 2021 Kalkine Media

ALSO READ: Six ASX dividend players going strong in 2021

However, dividend yield often used as a screening factor can be misguiding, especially if investors fail to understand that high yield has resulted from a decrease in the market value of that business. Moreover, high yield can also signal that the Company is distributing income rather than re-investing to fuel growth. 

RELATED ARTICLE: Five mid-cap stocks that have delivered over 10% YTD returns

Keeping this in mind, let us look at such three mid-cap stocks on the ASX, which have an annual dividend yield of more than 5% and exhibited positive stock momentum in the past six months. 

RELATED ARTICLE: Ten blue chip shares with fully franked dividends on ASX

Abacus Property Group (ASX: ABP)

Abacus Property Group invests in the self-storage and commercial property sectors. The Company recently acquired one-third interest in the Myer Melbourne property for a consideration of over AU$135 million. The other investors in the property include Charter Hall Long WALE REIT (ASX: CLW) and Vicinity. 

RELATED ARTICLE: Five real estate ASX shares with dividend yields over 5%

Abacus has announced a final dividend of AU$0.085 for FY21, to be paid on 31 August 2021, bringing the total dividend for the year to AU$0.17. The Group had an annual dividend yield of 5.24% as of 10 August 2021. The shares of ABP with a market capitalisation of AU$2.65 billion have given a return of over 23% in the past six months. 

CSR Limited (ASX: CSR)

CSR is a major industrial company that provides building products for residential as well as commercial construction. 

CSR, which has an annual dividend yield of 6.26% as of 10 August 2021, paid a final dividend of AU$0.145 for the year ended 31 March 2021.

The Company indicated that solid cash generation and property proceeds allowed a significant uptick in dividends, with a full-year dividend of 23 cents per share increased from 10 cents dividend distributed in the previous year. Notably, the Company did not give any final dividend last year. 

ALSO READ: Selling in Industrial Stocks Impacted Broader Market

As of 10 August 2021, CSR had a market capitalisation of AU$2.82 billion and exhibited a share price growth of 3.74% in the past six months. 

Source: Copyright © 2021 Kalkine Media

IOOF Holdings Limited (ASX: IFL)

IOOF Holdings is a financial services company offering a range of wealth management products and services to help clients achieve their financial goals.

The Company paid a fully franked interim dividend of 8 cents per share (cps) and 3.5 cps on 18 March 2021 to bring the total interim dividend to 11.5 cps. The special dividend reflects the Company’s commitment to returns to shareholders.

IOOF Holdings has an annual dividend yield of 5.15% and market capitalisation of AU$2.89 billion as of 10 August 2021. The Company’s shares have given over 34% return in the past six months. 

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