It’s hard to believe it but as recently as mid-2011 Telstra Corporation Ltd (ASX: TLS) was an unloved stock trading below $3 a share and on a trailing dividend yield of around 9%.
Fast forward to today and Telstra has become the ‘go-to’ stock for yield-hungry investors. In the clamour the share price has soared towards the $6 level, yet the dividend has only been increased by 1.5 cents per share (cps) over that time. As such, Telstra is currently trading on a forecast FY 2015 fully franked dividend yield of 5.3%.
While Telstra’s yield is nowhere near as appealing today as it was back in 2011, at 5.3% it is still a whole lot better than the yield offered by many other stocks, not however by all stocks!
Consider the following four if you want to beat Telstra’s yield…
Suncorp Group Ltd (ASX: SUN) is expected to pay out a dividend of 93.6 cps in FY 2015 according to analyst consensus data provided by Morningstar. Even with the shares trading toward the top end of its 52-week range, the stock still offers a prospective fully franked dividend yield of 6.5%.
Prime Media Group Limited (ASX: PRT) is forecast to pay out an increased dividend in FY 2015 of 7.4 cps. With the share price sinking to a new 52-week low on Friday of 80 cents, the implied yield is a hefty 9.25% fully franked.
STW Communications Group Ltd. (ASX: SGN) is forecast to pay a flat dividend of 8.7 cps in FY 2015. With the share price at $1.15, the forward yield is expected to be 7.6% fully franked.
JB Hi-Fi Limited (ASX: JBH) is forecast to increase its dividend in FY 2015 to 86.8 cps. With the share price having been hammered by 26% so far this calendar year, the forward fully franked yield is 5.4%.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.
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