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Yuuge dividends! Check out Platinum Asset Management (PTM) and Telstra Corp (TLS) shares

Platinum Asset Management Limited (ASX: PTM) shares and Telstra Corporation Ltd (ASX: TLS) shares offer huge dividend yields.

TLS and PTM dividends

TLS dividend

It should be noted, the dividend yields shown in the chart above are trailing. Meaning, the dividend yields are calculated using last year’s dividend payments.

So while Telstra and Platinum’s trailing dividend yields are much higher than the market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), both companies could cut their dividends in coming years.

Platinum, a funds management business, is expected to cut its yearly dividends from 32 cents to 26 cents, according to Morningstar data. That puts it on a dividend yield of 5.6% fully franked.

Telstra, the telecommunications behemoth, could come under pressure to cut its dividend if it cannot maintain its cash flow and profit as the NBN rolls out. The telco is expected to slightly trim its dividend over the next two years.

Foolish Takeaway

If you are seeking dividends, Platinum and Telstra should be on your watchlist. However, if you are a long term investor it’s vital to remember that dividends are a by-product of the company’s success. Indeed, you should be focusing on the business‘ growth prospects first and foremost, then the dividend. I recently wrote an article on Platinum here

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Motley Fool Contributor Owen Raszkiewicz owns Platinum shares. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Platinum Investment Management Limited and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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