What better occasion than Halloween to reduce the “scariness” of your portfolio by adding some bewitchingly attractive high yielding stocks to your portfolio?
According to analyst consensus data provided by Morningstar the following five companies are all currently trading on financial year (FY) 2016 franked dividend yields over 5%, which is attractive in the context of both a zombie apocalypse and when compared against the forecast average for the S&P/ASX 300 (Index: ^ AXKO) (ASX: XKO) which is 4.9%.
Recently listed packaging group Pact Group Holdings Ltd (ASX: PGH) is forecast to pay a dividend of 21 cents per share (cps). With the share price closing Thursday at $3.81, the stock is priced on a yield of 5.5%.
Automotive Group Holdings Ltd (ASX: AHE) operations span automotive retailing and logistics. The group is forecast to pay a dividend of 25.6 cps. With the share price at $3.77, a forecast yield of 6.8% is available.
Patties Foods Limited (ASX: PFL) share price has regained most of the ground it lost in the first half of 2014 with the share price back up to $1.30. The savoury and frozen food manufacturer is forecast to pay a dividend of 8 cps, implying a yield of 6.1%.
Perhaps one of the most appealing yield opportunities currently is McPherson’s Ltd (ASX: MCP). The company sells a number of branded ‘everyday essential’ consumer products. While earnings and dividend growth both appear limited, a forecast dividend of 15.4 cps, equates to a massive yield of 12.6%.
Like McPherson’s and indeed many high yielding stocks, earnings growth expectations for regional broadcaster Prime Media Group Limited (ASX: PRT) are low. Despite this, analysts are forecasting dividends to creep higher to 7.5 cps by FY 2016. With the share price having just hit a new 52-week low of 84 cents, the forecast yield is 8.9%.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.
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