In the current low interest rate environment, finding quality ASX dividend stocks is a top priority for most investors.
That's because most term deposits are currently sporting interest rates between 2.5% and 4%, depending on the duration and size of your investment. However inflation is currently 3%, meaning you could actually be losing money after tax, from a purchasing power point of view.
But with so many stocks listed on the ASX, it's hard to know where to start. So here are five dividend stock ideas you can add to your watchlist today:
1. Macquarie Group Ltd (ASX: MQG) is our largest diversified investment bank. It has operations in funds management, advisory as well as investment, retail and corporate banking. Given its exposure to foreign markets, it'll benefit from a falling Australian dollar. Shares change hands on a trailing dividend yield of 4.4%.
2. Super Retail Group Limited (ASX: SUL) is the owner of outdoor and leisure retail stores such as BCF Boating Camping Fishing, Rebel, Supercheap Auto, Amart Sports, Rays Outdoors and more. The group's share price has been hit hard in 2014 (down 40%) on the back of weaker than expected profits, mostly in the Leisure division, as a result of poor consumer confidence and a slowdown in the resources sector. It currently yields 5.1% fully franked.
3. Amcor Limited (ASX: AMC) is a global packaging business with over 95% of sales derived outside Australia. As a result, the company is now moving to US dollar reporting in 2014/2015. The company trades on a dividend yield of 3.8% fully franked.
4. Bank of Queensland Limited (ASX: BOQ) is a growing $4.5 billion retail bank. As it expands across the country, it is becoming more efficient and in the near term will focus on asset growth within its retail banking arm. It currently yields 5.3% fully franked.
5. Coca-Cola Amatil Ltd (ASX: CCL) has received a lot of negative press in recent times, as it has continued to disappoint investors. Indeed, in the past year its share price has fallen from over $13 to just $8.74. However, CEO Alison Watkins is targeting a return to sustainable earnings growth and will look to cut $100 million of costs in the next three years. It trades on a forecast dividend yield of 4.8%.
