Previously, I wrote about the stocks that Credit Suisse thinks will be target investments for SMSF investors. The financial services firm expects that those amassing wealth through DIY super plans, or self-managed super funds, will be looking for high-yield stocks that have good track records for raising dividends.
Even if you don't have an SMSF, you can still benefit from this investing movement by buying into the stocks that you think these SMSF investors will be getting into over the coming years. That could help your retirement as well!
Here are four high-yield stocks that have raised their dividends steadily over the past five years.
1) Woodside Petroleum Limited (ASX: WPL), the energy giant, has a sizeable war chest for acquisitions and investments and is looking for LNG development sites in several regions overseas. Its LNG projects near WA are generating steady revenue, which is partly why its dividends have been rising an average 15% annually in the last five years. The stock offers a big 5.5% yield fully franked. Future oil development may take more capex in the short term, but later the earnings and dividend gains could flow.
2) JB Hi-Fi Limited (ASX: JBH) has grown dividends an average 13% annually over the past five years. The electronics and appliances retailer pleased investors with a 10% full year net profit rise in FY 2014 and same-store sales were good for its new JB Hi-Fi HOME format stores. The yield is 5.0% fully franked and consensus forecasts are for moderate dividend growth over the next two years.
3) IOOF Holdings Limited (ASX: IFL) is a financial services provider for portfolio administration, superannuation, annuities and investment trusts. It yields a fully franked 5.1% and dividends are forecast to rise an average 10% annually in the next two years.
4) ALS Limited (ASX: ALQ) operates testing and analytical laboratories worldwide for food, minerals, life science and energy. It has a good track record for dividend growth. The recent mining pullback has affected business, so earnings and dividends may be slow or flat over the next two years. The stock offers a 5.1% yield partially franked.
Similar to major stocks, smaller companies of good quality can also have reliable earnings growth as well. For example, there is one stock, a small-cap company not widely followed, that recently reported impressive results. The Motley Fool's analysts have called it "The Top Stock of 2014". It has a reliable record for growth plus boasts a pathway for further earnings growth.
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