Earnings season is over for the ASX200. I’m glad because its been a hectic month of reporting and canvassing what’s important and what’s not. Next week I’ll be reporting on the overview, with some interesting sector results and overall picture of where the market is headed. And its time to update my Australian Share Market Valuation Report, so look out for that later this month.
In the meantime, let’s have a look at what companies are declaring dividends – some have already done so during the earnings season – and the yields look pretty impressive for you yield chasers out there:
The above table was compiled by ASXIQ, a blog who provides free stock market investment tools, quantitative analysis and trading ideas.
This table calculates the yield based on only the paying dividend – not the full year (interim and final) dividend yield, so in most cases double or nearly double the yield to get the annual rate.
Also, with a fully franked dividend, the actual yield needs to be multiplied by 1.42 times or “grossed up”. This is done to compare the yield to other positive cash-flow investments (including property) on a like for like taxation basis.
For example, Suncorp is offering a 6 month term deposit at 5.75% – not bad, but this is fully taxable. The equivalent fully franked dividend yield to match this must be approx. 4% annualised, or any of the above stocks with a yield above 2%
As you can see, there are plenty that meet this criteria, which may explain why the “chasers” are not wearing bear suits on the ASX200. Of course, markets can drop 2% or 4% in a day, let alone six months, so there is more to it than just picking the highest yielding stock….