It's time to take control of your wealth in 2015.
The first step is to get the basics right. This means controlling your emotions, spreading your risk, and letting time make you rich. The next step is to put your money to work.
Strong, high yielding dividends are one way to get your money working hard to increase your passive income and in the current low interest rate environment it is hard to beat companies offering a sustainable 6% return.
Seeking sustainable dividends means excluding companies like Woodside Petroleum Limited (ASX: WPL) which have yields likely to be slashed under current volatile energy prices.
The following four companies, on the other hand, are worth your consideration as big 6% plus dividend payers:
1. Insurance Australia Group Ltd (ASX: IAG)
Insurance Australia Group currently yields an impressive 6.2% (fully franked) based on 2014's pay-out of 39 cents per share.
Insurance companies are known for their reoccurring cash flows and in October last year IAG reiterated it was well placed to deliver on full year guidance for Financial Year 2015 (FY15). The company's (reported) insurance margin is expected to be in the range of 13.5-15.5% for FY15, slightly down on FY14's margin of 18.3%.
However, with the addition of the newly acquired insurance book from Wesfarmers Ltd (ASX: WES) gross written premiums (GWP) is expected to grow by up to 20%.
2. FlexiGroup Limited (ASX: FXL)
Shares in consumer financing company FlexiGroup Limited have dropped by 35% in the last 12 months as investors continue to fret about the economy, pushing the dividend yield up to a mammoth 6.8%, fully franked.
FlexiGroup is forecasting Net Profit After Tax (NPAT) growth of up to 7% in FY15 to support the continued dividend.
In addition, falling oil prices work in the company's favour by putting more money into consumer pockets, while current low interest rates keep down the company's borrowing costs.
4. G8 Education Ltd (ASX: GEM)
Childhood education provider G8 Education has grown aggressively through acquisitions over the last few years and the growing cash has seen the company increase its annual dividend by 20%.
At its current share price G8 Education has a fully franked dividend of 6.2%.
4. Contango MicroCap Limited (ASX: CTN)
Listed investment company Contango MicroCap paid out dividends totalling 8 cps in 2014, bringing the company's dividend yield up to a massive 7.5%. Contango runs a managed small-cap fund and has produced returns averaging 17% per year over the last 10 years. The dividend is made up of gains on investments as well as dividend and interest income. These can fluctuate, but the company still has a dividend policy to pay a minimum of 6% per annum.
