Which stocks have decent upcoming dividends?
Dividend time is fast approaching. Which stocks, if there are any, with decent dividends, would you consider with the highest conviction? Btw, new subscriber, impressed and happy so far ;-)
Cheers
Nick
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Answer
Hi Nick,
Thanks for both very timely question and positive feedback, always a nice way to start the weekend. We’ll actually look to provide a more in depth analysis on this subject next week but for now the ones catching my eye are listed below.
1 BHP Group (BHP) – although we believe a period of consolidation is likely, it’s projected $1.60 fully franked dividend (with ex-dividend date on the 2nd September) looks attractive, while over the next 12 months, a 7.13% yield is forecast, which looks sustainable assuming our view towards reflation proves on point.
2 New Hope Corp (NHC) – this is left field however the coal producer is forecast to yield over 5% over the next 12-months while looking a strong candidate for some capital gains into Christmas, although they do not pay a dividend until December.
3 Others we like at current levels that pay attractive / sustainable dividends: Service Stream (SSM) ~7% yield which has been a poor performer for us however this weeks announcement was good, Ive Group (IGL) ~6% yield, Metcash (MTS) ~5% yield (although no divi til December), & good old Telstra (TLS) ~4% yield which we think is worth ~$4 plus it will easily maintain its dividend.
All up, while dividends are important it’s still important to buy stocks that will do well in absolute terms, not just pay a nice dividend.
