Three HIGH DIVIDEND Stocks To Watch Australia
Three Stocks To Watch With High Dividends
In this article we give ASX investors three high dividend stocks to watch in Australia. These three high dividend stocks exist in diverse industries including Buy Now Pay Later sector, banking and manufactoring, which emphasises the need to watch these stocks.
Stocks To Watch With High Dividends: MyState (MYS)
This Tasmanian based stock to watch with high dividends is no AfterpayTouch, but its FY19 result demonstrated the small cap's consistent profitability from which it pays high dividends, which is why this stock to watch has been a perennial inclusion in our high dividend stocks and portfolios. As expected this stock to watch final fully franked high dividend was maintained at 14.5 cents, taking the full year to an unchanged 28.75 cents.
With the stock to watch growing home loans at twice the market rate it was good to hear management is going to further increase its focus net interest margin management. That is, not sacrifice profitability for growth’s sake.
Stocks To Watch With High Dividends: Auswide (ABA)
This stock to watch regional lender’s origins date back to 1966 when it was the Burnett Permanent Building Society. Over time this stock to watch with high dividends evolved into its current form via a number of amalgamations with other building societies. This stock to watch with high dividends is a bank that primarily serves the retail customer segment and provides the typical range of financial products including deposits, home loans, credit cards, insurance and superannuation.
With a strong capital position and sound asset quality we believe this stock to watch should be able to at least hold the FY19 fully franked dividend of 34.5 cents in FY20 assuming the economy doesn’t fall off a cliff. At current levels the stock to watch with high dividends represents reasonable value trading at an estimated FY20 PE about 13 times and paying a forecast 6% yield which is particularly appealing in a low interest rate environment.
Stocks To Watch With High Dividends: Gale Pacific (GAP)
This stock to watch with high dividends has the highest dividend yield of the three stocks to watch, which accounts for the greatest risk. Diversification is your friend when you go up the risk cover. We have covered the stock to watch with high dividends for a long time, so we know the business well, which is solid but cyclical, selling its products to major markets in North America and Asia. This stock with high dividends has a strong balance sheet with net debt of $25m and has paid dividends fairly consistently.
You wouldn’t bet the house on it, but you could buy it for a bit of income that could help pay some bills. If you’re looking for $200 a year in income you buy 10,000 shares for $3000 you’re getting 1 cent a share in dividends every six months.
Read more about our Best ASX Dividend Stocks
ASX High Dividend Stocks To Watch: Portfolio Analysis
In Under the Radar Report’s Stock Report Issue 368 we present a portfolio of ASX high dividend stocks to watch as well as the criteria that we use to select the best ASX high dividend stocks for a portfolio. Below are some take-outs from having invested for dividends over a long period.
One Final Comment on High Dividend Stocks To Watch
High dividend stocks represent an important price signal for ASX investors. When there is increased uncertainty and the market comes under pressure, if high dividend stocks are able to maintain and even increase dividends, this augurs well for your portfolio’s ability to weather the storm.
Things do change. Circumstances change for all companies. Under the Radar Report’s team of independent share analysts monitor what’s going on at the operational level and what’s going on at the price level.
Let us worry about when to BUY, SELL or HOLD your ASX Stocks, because these are not set and forget investments.
Read more about how we find the best ASX dividend stocks for our subscribers and how you can too.