The ASX website is a great source of information for investors. There's a huge resource of learning material available for both new and experienced investors on all kinds of topics, including managed and exchanged traded funds, options and other derivatives training, as well as share price and news releases information.
Investors that subscribe to the website also receive a great monthly newsletter that has some interesting articles and stock picks. This month's article features an analysis of the top 10 mid-cap stocks for income-focussed investors.
Companies with the right stuff
The article explains three main factors to look for when in search of income:
- A mature and healthy business that has a strong history of growing earning per share and consistently making profits. Companies that pay tax in Australia will also pay out franking credits which boost real dividend returns.
- The company should have strong free cashflow that can be paid out as dividends. A stable and growing positive cashflow is key for reliable dividends and preservation of capital.
- Companies that are set up as a trust, such as real estate investment trusts, can be a great way of boosting returns. Trusts are required to distribute all cash to investors and can benefit from favourable tax treatment.
10 Top Mid-caps for Income
The article lists the following ten stocks as having impressive dividends, earnings per share growth, and futures:
BWP Trust (ASX: BWP), 6.2% gross yield
Cromwell Group (ASX: CMW), 8.1% gross yield
Spark Infrastructure Group (ASX: SKI), 6.9% gross yield
Ardent Leisure Group (ASX: AAD), 5.3% gross yield
RCG Corporation Limited (ASX: RCG), 7.6% gross yield
Bank of Queensland Limited (ASX: BOQ), 7.1% gross yield
FlexiGroup Limited (ASX: FLX), 6.0% gross yield
Woodside Petroleum Limited (ASX: WPL), 8.3% gross yield
BC Iron Limited (ASX: BCI), 16.3% gross yield
Mineral Resources Limited (ASX: MIN), 8.43% gross yield
The 10 stocks are from a wide range of industries and come with varying levels of risk, but will provide investors with a great income source above that of most large cap stocks.
