The Largest Dividends Available Now on the ASX.
Some investors are looking for capital gains, some are looking for the next big thing. And others are looking for solid dividend payments.
Here we will take a look at the current highest paying dividend stocks on the ASX.
Some of these shares won’t be the most stable and may have paid out more in dividends than they earned, this is definitely not sustainable for a business and will in the end make the company go broke. But for now we will take a look at 3 of the largest dividend paying stocks on the ASX right now.
Vicinity Centres (VCX)
Vicinity Centres is your typical Australian REIT. Some REIT’s in Australia specialize in specific markets and VCX is no different. They specialize in Australian shopping centres. Vicinity Centres operates 110 shopping centres in Australia.
Vicinity typically pay dividends twice a year. They pay in June and in December and taking last years trailing dividend gives us a Dividend Yield of 12.7% unfranked. However, it must be noted that as they run shopping centres they will be hit very hard by the effects of Social Distancing and closures of retails stores. Will Vicinity Centres be able to continue this dividend payout? Most likely not, but it’s definitely something to watch if you are chasing some potential yield near the 10% mark.
Boral are an international building products and construction materials group. Boral operate three strong divisions, Boral Australia, USG Boral and Boral North America. Boral own and operate a lot of building materials for infastructure projects, like road construction, building materials and distribution of their products. In the year 2000 they demerged with Origin Energy to form their own company Boral.
Boral’s revenue has been flat in the past year’s financial report so this may affect their share price for the short term. Taking a look at Boral’s trailing 12 month dividends they pay out twice a year, typically in March and in August/September and have a current Dividend Yield of 9.95% with 50% franking credits. Boral seem to be continuing on their everyday path with regards to work but have retracted their FY2020 earnings guidance due to COVID-19. You could expect a downturn in the economy to hurt Boral as they do rely on major infrastructure projects for their main source of income. With less people working now and rising unemployment rates, it really comes down to Government spending on infrastructure projects and Boral’s ability to win such tenders to be able to continue their revenue streams. Another one to watch.
Yancoal Australia (YAL)
As you’d be able to guess, Yancoal is a coal miner which operates five mines and managing five others across New South Wales, Queensland and Western Australia. Yancoal employ approximate 3000 people where they source a majority of their employment from the nearby towns in which they mine.
Coal miners and producers are a little unliked by some in Australia due to the potential for increase in Global Warming. Coal is one of the oldest forms of energy production in Australia which is still used today.
Coal price being at a near 3 year low puts this one on the watch list. While Yancoal may be hurting by the lowering of cost of coal, it may also present an opportunity for potential gains in the future when and if prices rise.
The trailing 12 month dividend yield for Yancoal puts the current Dividend Yield to 14.7%. This is by far the largest dividend payer on the ASX and does seem abnormally large. As the demand for coal continues to fall, will the coal miners still be able to produce the coal at affordable prices that allow them to continue dividend payments?