Here are the “Top 10” dividend stocks to keep an eye on in 2021 and beyond after you’ve learned the fundamentals of dividends and how to calculate the all-important Dividend Yield.
Cromwell Property Group (ASX: CMW)
Cromwell Property Group, a diverse real estate investment and management firm, is the first cab off the rank. Cromwell manages assets totaling roughly $12 billion, with more than 2,700 tenant customers. Most of the properties have been leased out as office spaces in 15 countries.
Cromwell’s dividend yield currently stands at 8.2 percent, based on the company’s dividend payments over the past year. Although DPS has been decreasing steadily since 2018, the dividend yield has remained steady at between 6 percent and 9 percent. Cromwell Property’s share price has fallen recently, resulting in an increase in the dividend yield.
BHP Group Ltd (ASX: BHP)
BHP, Australia’s third-largest publicly traded firm, follows on the ASX 200’s list of the highest dividend-paying equities.
The diversified miner reaped the benefits of a strong period for commodities. As a result, shareholders received a dividend bonanza. This year’s dividend rise was more than 150 percent, increasing the dividend yield to 10.5%.
BHP’s share price has plummeted about 30 percent since its highs on the heels of the declining iron ore price, but this yielding has increased.
AGL Energy Limited (ASX: AGL)
AGL Energy, one of Australia’s oldest enterprises, is yet another victim of falling DPS and rising yields. There seemed to be no respite for the $4 billion energy and gas provider in the last year as the bills piled up. AGL reported a loss of $2.06 billion in FY21 due to provisions for out-of-the-money renewable power contracts and the restoration of generation sites.
It paid 65 cents per share in dividends last year, despite a catastrophic event. As of this writing, the dividend yield on AGL stock is 10.6 percent. The company’s share price fell 54.3 percent throughout the dividend payment period, boosting its yield once more.
Rio Tinto Limited (ASX: RIO)
That gets us to Rio Tinto, the ASX 200’s second-highest dividend yielder. Over the past year, Rio Tinto has been on a dividend splurge, following a common theme among the cash-rich iron ore companies.
In the last year, the mining company was able to pay out substantial dividends to its stockholders because its profits soared to US$18.8 billion, up from US$7.2 billion the year before. Consequently, the company’s DPS last year was $9,312 US dollars. A 13% dividend yield is the result of using Rio Tinto’s current share price.
Fortescue Metals Group Limited (ASX: FMG)
Finally, Fortescue Metals, a fast-growing Australian iron ore miner, is the ASX 200’s top dividend-paying stock.
Iron ore prices surged in the first half of the year, boosting the company chaired by Andrew ‘Twiggy’ Forrest’s earnings by more than quadruple. Thus, dividends rose from US$1.403 to US$3.035 over the course of a year, as the firm planned to do.
Fortescue’s share price has fallen about 50% in the last few months, making it the worst-hit of the main iron ore producers. Consequently, the company’s dividend yield has soared to a whopping 27.9%, making it the ASX 200’s highest yielding dividend stock.
Does ASX 200 pay dividends?
On the ex-date, dividends are credited. The S&P/ASX 200 Index supports this conclusion (TR). This procedure is more straightforward than adding dividends on the pay date because stock prices are adjusted downward to account for payouts on the ex-date.
How long do you have to hold a stock to get the dividend?
For dividends to be taxed at the preferred 15% rate, you must hold the shares for a certain amount of time. Within the 121-day window surrounding the ex-dividend date, the minimum term is 61 days. Beginning 60 days prior to the ex-dividend date, the 121-day period begins.
How many shares do I need to get a dividend?
Companies pay dividends to shareholders in the form of either cash or extra stock. Assuming you hold 100 shares of the company, you’ll earn 100 times as much in cash dividends as someone who owns only one piece of stock. A date known as the “ex-dividend date” must be met in order to receive the dividend.
Are dividend stocks worth it?
Investing in dividend-paying stocks is always risk-free. Investing in dividend stocks is considered safe and secure because they pay out regular cash dividends. Several of them are among the world’s most valuable corporations. As long as a company has increased its dividend every year for the past 25 years, it is regarded safe.
How much stock do you need to get dividends?
With an average portfolio of $200,000, you’ll need to put aside between $171,429 and $240,000 to earn $500 a month in dividends from your investments.
The dividend yield of the companies you buy determines the exact amount of money you’ll need to invest to build a $500 monthly dividends portfolio.
Divide the current share price by the annual dividend per share to arrive at the dividend yield. You get Y% of your investment back in dividends for every X dollars you put in. Dividends can be thought of as a return on your investment.
Generally speaking, dividend-paying stocks with a dividend yield of between 2.5 percent and 3.5 percent are advised for regular stock investments.
Just remember that the stock market was wild in 2020 and 2021. Compared to prior years, this year’s aim benchmark may be a little more flexible. You’ll also have to consider whether or not you’re ready to put your money into a volatile stock market.
Estimate the amount of money you need to invest
Many dividend-paying stocks do so on a quarterly or four-times-a-year basis. With at least three quarterly stocks, you can expect to get a total of 12 dividend payments per year.
Estimate your investment per stock by multiplying $500 by four, which equals $2000 for the annual payout per stock. You’ll need to invest a total of $6,000 per year in order to cover the entire year’s dividend payments.
Assuming a 3% dividend yield, $6,000 divided by $200,000 equals about $200,000. You’ll invest $66,667 in each stock.
Will ANZ pay a dividend in 2021?
The Group has proposed a 72 cents per share fully franked 2021 Final Dividend. In addition, New Zealand imputation credits of NZD 8 cents per share will be linked to each share.
What dividend does Telstra pay?
There is still a lot of work to be done to ensure that Telstra’s prized 16 cents a share full-year dividend can be maintained into the future, according to Telstra CEO Andy Penn.
Prior to this announcement, Telstra had stated that the company’s underlying earnings would have had to land between $7.5 billion and $8.5 billion in that period in order for the current dividend policy, which sees close to $950 million given to investors every six or so months, to be supported.
Australian shareholders
Shareholders with a registered address in Australia will now be able to receive cash dividends by direct credit, as was previously indicated.
Cash dividends will be retained in a non-interest-bearing special purpose account for shareholders who fail to provide the Share Registry with a valid bank account number.
Shareholders outside Australia
If you are a shareholder outside of Australia, you can expect to receive cash dividends in the form of direct credit to your specified bank account (as applicable).
For each currency, the current market rate was used to calculate the direct credit conversion rates on November 18, 2021, at 4:00 p.m. (AEDT).
