According to a recent analysis, 2020 was the worst year for dividends in Australia. The 35% cut in dividends surpassed the falls over past years, and this was exacerbated by the 2020 Covid sell off in the market.
Self-funded retirees also took a huge hit. The Australian Prudential Regulation Authority (APRA) initially discouraged banks from paying any dividends at all. This meant that any investor who relied heavily on dividend paying stocks for returns suffered with lower payout ratios.
Thankfully the marker has recovered since then, and while most Australians are looking for standard dividend paying stocks, there is another world out there of dividend-paying companies that offer the sweet spot by not only paying a dividend but also offer growth on top
Here we are listing a range of quality stocks that offer the sweet spot by offering dividends with growth on top. Many of them even have high levels of insider ownership from the founder or board.
1. Ive Group Ltd (IGL)
2. Wesfarmers Ltd (WES
3. BHP Group Ltd (BHP)
4. Shaver Shop Group (SSG)
5. Southern Cross Electrical Engineering (SXE)
2022 has emerged as a strong year for dividend income, and it’s possible that these good times will continue for the remainder of the year. Although, when it comes to the big-four banks, they’ve always been a major focus, but this year, dividends were slashed across the board among the financials. However, there has been a significant write-back of provisions and strong increases in earnings lately. As a result, people have seen improved economic conditions.
At The End
When it comes to investing in stocks and other assets, it's always beneficial to consult a fiduciary asset management firm. Professional experts can guide you in investing in the best stocks that pay dividend income with growth on top. MF & Co. Asset Management is one such name that you can refer to for fiduciary financial advice. Browse the official website for further details.
Note: This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.