Which stocks for dividends right now?

[princeplanet]

I want to buy some stocks very soon, looking for good yield and some upside growth wise. Are the banks too high at present? Miners? Others? Any advice appreciated. thanks!

 

[notting]

I want to buy some stocks very soon, looking for good yield and some upside growth wise. Are the banks too high at present? Miners? Others? Any advice appreciated. thanks!

Mining services.
ASL
NWH
FWD
BLY there is more!
These may reduce their dividends a little, but their service books are not expanding but not really contracting that much either. Market tends to over react to headlines like - 'mining boom is over'.
Labor should get cheaper if less exploration.
Insurance
QBE
Bank
NAB
Clydesdale issue is pathetically small, but is treated like it's a mega issue keeps it cheap!
There's heaps more, market is great value still.
These are just what first came to my dementia mind.

 

[princeplanet]

Thanks. Any other thoughts?

 

[trillionaire#1]

As long as their is some diversity i guess,heres a list of my either owned divi stocks or those im keeping a close eye on,AAD,AAX,ABC,APN,ASL,ASX,BKN,BEN,BYL,CAB,CMG,DCG,DTL,DWS,EHL,FWD,HSN,IFL,ILU,IMD,LGD,MAH,MIN,MND,MLB,NAB,NWH,OKN,PRG,RIC,RCG,RFG,RHL,SUN,SXE,TRU,TSE,UGL,WBB..

of course DYOR,my stock picks can and sometimes do tank!

 

[Knobby22]

I would add MOC to the above list.

 

[So_Cynical]

With the All Ords at 4555 i would argue that the market may well look cheap and present as good value at the moment, but the absolute fact is that it was much better value 6 months ago at 4033, unless you were buying the miners and mining services.

Anyway on the subject of yield and entry i would suggest some very sound smaller caps...stocks not overly exposed to the mining slow down, the dollar, infrastructure spending or anything else that worries many.

• PFL - Patties Foods ~ 6.8% Gross Yield
• ALF - Aust Leaders LIC ~ 10.5% gross Yield
• ABC - Adelaide Brighton ~ 6.7% Gross Yield

I should disclose that i hold all the above and have done for a while.

 

[Tyler Durden]

Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.

DYOR. I hold.

 

[So_Cynical]

Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.

DYOR. I hold.

Wow TAH has a gross yield of over 10% .. downside is all the Govt regulation and state contracts that come and go and the anti gambling (nanny state) lobby..still an opportunity if the entry is low enough.

 

[systematic]

Stocks of a decent market cap etc.
5% minimum dividend yield (can be considered a high yield currently)
Payout ratio less than 50% (i.e. at least as much - or more - as the dividend payment is retained earnings)
Estimate annual dividends per share is greater than the trailing12 month dividends per share (i.e. expected to be growing dividends)


ASL Ausdrill
API Australian Pharmaceutical Industries
IMF IMF Australia
MIN Mineral Resources
PRG Programmed Maintenance Services

 

[Tyler Durden]

Wow TAH has a gross yield of over 10% .. downside is all the Govt regulation and state contracts that come and go and the anti gambling (nanny state) lobby..still an opportunity if the entry is low enough.

Yes, I think they are currently waiting to see if NSW will continue their exclusivity licence.

 

[skc]

Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.

DYOR. I hold.

Pretty sure tah is expexted to cut its dividend when something expires in the near future. Will have a dig and post here if i have time (and/or remember).

 

[sydboy007]

Pretty sure tah is expexted to cut its dividend when something expires in the near future. Will have a dig and post here if i have time (and/or remember).

I'm prety sure TAH lost the Victorian wager business, so the expected Dividend for 2013 is about half of the 2012 one.

Still a reasonable yield, but certainly not the WOW level it currently shows.

NAB is prob the only reasonably priced big four bank left, thought I do find ANZ tempting as their Asia growth strategy seems to be paying off and management so far has shown they will not buy into the region at over the top prices.

I like BSA, though they are thinly traded most days. They should be able to keep paying out around 10% full franked yield.

SXL southern cross is also a decent dividends payer, but the whole Nurse debacle could hit profits hard depending on what happens to the advertisers and if they get an expensive court case against them.

I'm tempted to say BHP, only in that they have a long history of increasing their dividends. If their liquids play in the USA pays off they could be pumping out quite tasty profits over the next cuple of years. Admittedly not as lucrative as digging up iron ore in the pilbara, but still offering very high ROI.

QBE is worth a look, but I'm waiting to get clarity on if they will do a capital raising - sounds like they might have to after SS Sandy and S&P showing some disquiet over their TIER 1 capital. They might decide to cut back on the dividend payout ratio as well for a couple of years to build up their capital that way.

From what I can see most of the better dividend stocks now are at the smaller end of the market. All the big caps have taken off int he last few months and while they still pay a decent income, they're not as attractive now. Who says timing doesn't matter

 

[princeplanet]

Smaller caps are still beyond me for the moment, I don't understand enough about how to read them. Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value? At least over the next year or two.....

 

[Klogg]

Smaller caps are still beyond me for the moment, I don't understand enough about how to read them. Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value? At least over the next year or two.....

To be honest, I would have thought that Smaller caps are easier to understand, as the smaller the company, the simpler their operations (usually).

Ofcourse, this could just be me...

 

[So_Cynical]

Smaller caps are still beyond me for the moment, I don't understand enough about how to read them. Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value? At least over the next year or two.....

Don't know how to read them? sorry prince but that line has 0 credibility...how about some honesty?

Please explain to us why you want to focus on the top 20..honestly.

 

[princeplanet]

Don't know how to read them? sorry prince but that line has 0 credibility...how about some honesty?

Please explain to us why you want to focus on the top 20..honestly.

Huh? I don't understand why I wouldn't wanna be "honest" about all this... And yes, I don't know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?

 

[Country Lad]

Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value? At least over the next year or two.....

Looking at dividends is fine, but even for the larger companies, don't necessarily expect the dividend to remain the same. There is the possibility that with a downturn in the economy, the profits drop and the dividend falls.

The average dividend yield for the ASX 20 is only about 3.8% which isn't real flash. At least they are all fully franked which helps.

Knowing that interest rates were falling and the possibility of lower dividends, I went for fixed rate bonds to store cash a while ago. Most are low risk and have increased in value since eg HBSHB 7.25% unfranked, face value $100, now $106 fair value $107.43. I see one of the main brokers is recommending MQCPA and WHFPB.

That's not answering your question because I donno, not interested in any of the ASX20 for dividend outside the ones I hold at the moment.

Cheers
Country Lad

 

[Klogg]

Huh? I don't understand why I wouldn't wanna be "honest" about all this... And yes, I don't know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?

For me, the assumption that the majors are 'safer' is wrong...

The idea of too big to fail isnt always true.

 

[So_Cynical]

For me, the assumption that the majors are 'safer' is wrong...

The idea of too big to fail isn't always true.

Yep.

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But its hard sometimes to get people to understand that size and market cap doesn't count for much..RIO was $85 not that long ago (2011) and $49 dollars this year...Top 5 stock yet buy at the wrong time and you lose lots.

 

[Muschu]

Huh? I don't understand why I wouldn't wanna be "honest" about all this... And yes, I don't know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?

Your question does not seem to have been answered yet but I, for one, certainly see nothing dishonest in your remarks. Rather, I viewed it as being very open.

Perhaps another reflection of the difference between sitting in front of a keyboard rather than in front of a person?

Regards

Rick