A new month brings new opportunities for investors. The typical May sell-off didn't happen and the S&P ASX All Ordinaries Index (ASX: ^AORD ) was relatively flat with a 0.8% rise during May.
You can still turn June into a winning month with some large-cap stocks offering attractively large dividend yields. If share prices come off a little, then the yields could rise even more. A low interest rate environment makes high yielding dividend stocks more sought after by those seeking good portfolio income.
Here are three big name stocks that are paying a large dividend yield now and could grow dividend payments in the future with acquisitions.
Stockland Corporation Ltd (ASX: SGP)
The housing and commercial property developer has a dividend yield of 6.2% unfranked. With the growing property market its housing construction division is seeing a record number of pre-sales, so there is a good amount of construction to occur over the near-term. In addition, it currently is trying to takeover Australand Property Group (ASX: ALZ) for $2.5 billion to consolidate its market position.
Insurance Australia Group Limited (ASX: IAG)
Shares for the market leader in general insurance offer a 6.0% dividend yield fully franked. General insurance is improving due to the fewer large-scale catastrophic natural disasters in the past several years.
The company will be expanding its insurance market share as it buys the insurance business of Wesfarmers Ltd (ASX: WES). This acquisition could also benefit dividend growth in the mid to long-term.
Woodside Petroleum Limited (ASX: WPL)
The oil and gas producer is also hunting for acquisitions to maintain its growth. In May, the company did have informal talks with Oil Search Limited (ASX: OSH), but downplayed any significance in them. If the company isn't looking for a big acquisition, it could take up a stake in the LNG producer, which is projecting LNG production output to quadruple by sometime in 2015 at its PNG LNG project.
In the meantime, Woodside's stock has a 5.6% dividend yield fully franked.
