With the ASX hitting six-year highs recently, you may be surprised to read that it’s still possible to find shares that offer a great yield and aren’t ridiculously priced. Indeed, with interest rates being relatively low, dividends matter even more to investors. So, to help kick-start your portfolio’s income return, here are three super dividend stocks that could boost your portfolio.
It’s been a rather disappointing 2014 for investors in Telstra Corporation Ltd (ASX: TLS), since shares in the company have risen by 4% while the ASX is up 5%. Despite this, Telstra still trades at a small premium to the wider market when it comes to its P/E ratio, with Telstra having a P/E of 17 versus 16.6 for the index. However, where Telstra really appeals is not in terms of its valuation, but rather with regard to its dividend yield. That’s because the mobile phone provider currently offers a fully franked yield of 5.2%, which easily beats the ASX’s yield of 4.4% and makes the company a very attractive income play.
As with Telstra, Stockland Corporation Ltd (ASX: SGP) does not offer particularly good relative value at current price levels, with the property group currently having a P/E of 17.2 versus 16.6 for the wider index. However, as with Telstra, the real appeal comes through its dividend yield since Stockland currently yields a highly attractive 5.9%. Although dividends are not franked, they could be set to increase at a decent rate as Stockland is forecast to deliver an increase in EPS of 8.3% next year, which could make it an even better income prospect for your portfolio.
Sticking with property, DEXUS Property Group (ASX: DXS) also offers an index-beating yield of 5.1% although, as is the case for Stockland, it isn’t franked. However, Dexus offers good value as well as a high yield, with shares in the company currently trading on a P/E of 15.2. This is comfortably below the ASX’s P/E and, in addition, Dexus is forecast to grow earnings by an impressive 12.5% next year. Although shares in the company have risen strongly in 2014, being up 18% at present, they could have further to go and boost your portfolio income too.
Where to invest $1,000 right now
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*Returns as of February 15th 2021
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