Yahoo Finance Best Dividend Paying Stocks
Reject Shop, Sonic Healthcare, and National Australia Bank are three of the best paying dividend stocks for creating diversified portfolio income. Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. As a long term investor with a short term temperament, I highly recommend these top dividend stocks.
The Reject Shop Limited (ASX:TRS)
The Reject Shop Limited operates in the discount variety retail sector in Australia. Started in 1981, and currently headed by CEO Ross Sudano, the company provides employment to 5,430 people and has a market cap of AUD A$191.05M, putting it in the small-cap category.
TRS has a sumptuous dividend yield of 7.25% and is currently distributing 55.20% of profits to shareholders . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. If analysts are correct, Reject Shop has some strong future growth on the horizon with an expected increase in EPS of 84.34% over the next three years. More on Reject Shop here.
Sonic Healthcare Limited (ASX:SHL)
Sonic Healthcare Limited, a healthcare company, provides medical diagnostic services, and administrative services and facilities to medical practitioners. The company currently employs 33000 people and with the company’s market capitalisation at AUD A$10.00B, we can put it in the large-cap category.
SHL has a sizeable dividend yield of 3.31% and is paying out 71.17% of profits as dividends , with analysts expecting the payout ratio in three years to be 72.43%. SHL has increased its dividend from AU$0.49 to AU$0.78 over the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. More detail on Sonic Healthcare here.
National Australia Bank Limited (ASX:NAB)
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Asia, the United States, and the United Kingdom. Formed in 1834, and currently run by Andrew Thorburn, the company provides employment to 33,944 people and has a market cap of AUD A$72.75B, putting it in the large-cap group.
NAB has a great dividend yield of 7.39% and pays 87.19% of its earnings as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from AU$1.90 to AU$1.98. Continue research on National Australia Bank here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
