With RBA interest rates at new record lows, here are 10 ASX dividend shares for you to consider adding to your watchlist.
To calculate the yields on these stocks I have used the historical/trailing dividend payments. Meaning, the dividends the company has paid or declared in the past year. Keep in mind the company may change/cancel the dividend in the future.
1. National Australia Bank Ltd (ASX: NAB) – historical yield: 6%
NAB is one of the four largest banks in Australia in terms of market capitalisation, earnings and customers. However, in 2019, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending. It also operates the online-only Ubank. It competes against Commonwealth Bank (ASX: CBA) and ANZ (ASX: ANZ) for share of the mortgage and business lending markets.
2. SG Fleet Group Ltd (ASX: SGF) – historical yield: 7%
SG Fleet provides motor vehicle fleet management, vehicle leasing, short term hire, consumer vehicle finance, and salary packaging services in Australia, New Zealand, and the United Kingdom. The company offers fleet management services, including funding options, such as operating lease/contract hire, finance lease, and client sourced funding services and more. SG Fleet has also built it owns software tools to help corporate clients.
3. BHP Group Ltd (ASX: BHP) – historical yield: 5%
BHP is a world-leading resources company, extracting and processing minerals (like iron ore and copper), oil and gas, and has more than 62,000 employees and contractors, primarily in Australia and the Americas. Headquartered in Melbourne, BHP has shares listed on both the ASX and London Stock Exchange (BHP Billiton Plc).
4. APA Group (ASX: APA) – historical yield: 4%
APA Group listed on the ASX in 2000 with just six employees and has gone on to become one of Australia’s leading energy infrastructure businesses. Today, APA has 1,800 employees, 15,400km of pipelines and a 28,900km distribution network. APA is among the largest companies on the ASX with a market capitalisation of almost $13 billion.
5. Flight Centre Travel Group Ltd (ASX: FLT) – historical yield: 4%
Flight Centre is one of the world’s largest travel agencies and has company-owned operations in more than 23 countries, while its corporate travel management network spans more than 90 countries. The Group employs more than 19,000 people and owns 2,800 businesses. It has remained founder-led by Graham Turner to this day.
6. Premier Investments Limited (ASX: PMV) – historical yield: 3.5%
Premier Investments was listed on the ASX in December 1987 to be an investment vehicle to acquire or attain controlling stakes of ‘premier’ Australian companies with a particular focus on retailing, importing and distributing. It has leading retail brands like Smiggle, Peter Alexander, Just Jeans and Jay Jays. It also owns just over 28% of Breville Group Ltd (ASX: BRG) and part of Myer Holdings Ltd (ASX: MYR).
7. AP Eagers Ltd (ASX: APE) – historical yield: 2.6%
A.P. Eagers is Australia’s oldest listed automotive retail group, it has been going for over a century. It operates automotive dealerships across Queensland, South Australia, New South Wales, Victoria, Northern Territory and Tasmania. It has over 4,500 employees. The company has just made plans to merge with fellow vehicle business Automotive Holdings Group Ltd (ASX: AHG). Dividend investors will be wise to watch the transition and integration closely.
8. Telstra Corporation Ltd (ASX: TLS) – historical yield: 4%
Telstra is our country’s oldest telecommunications business, having built the first telegraph line in 1854. In 2019, it provides more than 17 million retail mobile services, around 5 million retail fixed voice services (e.g. home phones) and 3.6 million broadband services. Telstra also has operations in eHealth, network applications and subsea cabling. In 1997 (until 2006), the Government sold Telstra to Australian investors by listing the shares on the ASX. In recent years Telstra has been forced to cut its dividend payments amid rising debt and competition on the National Broadband Network (NBN).
9. Woolworths Group Ltd (ASX: WOW) – historical yield: 2.7%
Woolworths was founded in 1924 by Percy Christmas, its first store was opened in Sydney’s Imperial Arcade. Woolworths is Australia’s largest supermarket business, it operates Woolworths supermarkets in Australia and Countdown in New Zealand. It also runs the retail department store Big W. With over 3,000 stores and more than 200,000 employees it’s one of Australia’s largest employers.
10. Wesfarmers Ltd (ASX: WES) – historical yield: 4.9%
Wesfarmers is a 100 year-old conglomerate which at various times has owned and operated some of Australia’s largest retail brands such as Kmart, Target and more. Today, its largest business is Bunnings Warehouse, the number-one DIY home improvement business.
Buy, Hold Or Sell?
Each of these blue-chip shares deserves a spot on ASX dividend investors’ watchlists. However, that does not mean they deserve a spot in your portfolio. To learn more about each company click the stock ticker codes in the article to be taken a page full of analysis on each company. Alternatively, click here to read an article I wrote today discussing ways to think about the risk when buying dividend shares in a low interest rate world.
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Disclosure: At the time of publishing, Owen Raszkiewicz does not have a financial interest in any of the companies mentioned.