Top high-yielding stocks on the ASX 300 list
The volatility of recent years has seriously impacted the investment sentiment in the global market. Investors are analysing the situation more carefully and evaluating potential investments. Even high-yielding stocks of financially stable companies are not exempt from this trend.
In 2024, one of the tools used to assess earnings is the dividend yield. The analysis looks at ASX 300-listed companies whose shares have a trailing yield of 8% or more. In total, the list contains 28 such companies:
– 15 are from the financial sector;
– investment funds and trusts – 8 companies;
– companies from other sectors – 5 organisations.
The average performance of these companies over the year was -8.1%.
The top 3 companies with the highest returns were:
– Yancoal Australia – a coal mining company;
– Myer – a chain of mid-to-high-end stores;
– Magellan – investment company;
– New Hope Group – energy company;
– Zimplats – mining holding.
Among investment funds and trusts, the best performers were:
– NB Global Corporate;
– Qualitas Real Estate;
– Metrics Income Opportunities Trust.
Which companies to watch
According to Refinitiv’s analysis, of the 28 companies on the ASX 300 list, only four plan to increase their dividend payouts this year. Among them:
1. Yancoal has a market capitalisation of USD 7 billion. The company’s reliability results from a high-yield stock and high profits. In the first 6 months of 2023, the company’s profit after tax was USD 973 million. Of this, USD 489 million was paid out in interim dividends.
2. Myer. In 2023, the company had net sales of just over USD 71 million. This was the retailer’s best performance since 2015. The dividend was 9 cents per share.
3. Helia Group. Macquarie analysts expect the insurance company’s gross written premiums to decline in 2024. The company’s profits will likely fall by 27% in the current period. At the same time, experts hope Helia will maintain dividend payments at last year’s level by increasing the payout ratio.
4. Insignia Financial. Since the announcement of the 2023 cash outflow, the company’s shares have fallen by 13%. However, the company is working hard to regain shareholder confidence.
When assessing Australian high-yielding companies, their resilience in adversity is worth noting. Most have shown the ability to weather economic challenges with minimal losses. In addition, these companies have high growth rates, which can be a source of dividend growth over the long term. However, despite the positive outlook, investors should regularly monitor changes in the market and adjust their strategy.
