If you're looking for five ASX stocks with big dividends, you've come to the right place…
- Woolworths Limited (ASX: WOW)
Woolworths is currently feeling the pressure of a wave of negative investor sentiment sweeping over the local supermarkets space, thanks to the arrival of low-cost foreign operators such as Aldi and Costco. Woolworths' flailing Masters business is also weighing on sentiment. However, a discounted share price and short-term pessimism may have created a solid income opportunity for long-term investors. The stock currently yields 4.8% fully franked.
- Flight Centre Travel Group Ltd (ASX: FLT)
Following recent plunges in its share price, Flight Centre now appears very cheap. Despite a market-leading position across many fronts, investors have grown concerned over the threat of cheap online operators such as Booking.com. However, as Warren Buffett says, "You pay a very high price in the stock market for a cheery consensus". At today's prices, Flight Centre shares yield 4.4% fully franked.
- WAM Capital Limited (ASX: WAM)
WAM Capital is the largest of three funds chaired by Geoff Wilson. As of 30 June 2015, it was also the best performing Wilson Asset Management fund – outperforming the S&P/ASX All Ordinaries Accumulation Index by an impressive 9.5% per year since August 1999. While somewhat cyclical, WAM shares currently trade on a trailing dividend yield of 6.7% fully franked.
- National Australia Bank Ltd (ASX: NAB)
NAB is known to pay the biggest dividend yield of the major banks. Despite its share price significantly underperforming that of its three key rivals over the past ten years, NAB shares are forecast to offer a dividend yield of 5.65% fully franked in the next year.
- Cash Converters International Ltd (ASX: CCV)
Despite recently shunning retail investors in a capital raising, Cash Converters' shares may be back in the buy zone for long-term investors. The pawnbroker and payday lender has fallen 37% over the past year on the back of a number of internal and external concerns. However, the business has proven to be resilient over the long-term and is currently forecast by analysts to offer a dividend well above 5% fully franked in the next year – despite expectations of falling profits.
Are these five stocks a buy?
At today's prices, I wouldn't buy NAB shares, and I'm cautiously optimistic of the prospects of both Woolworths and Flight Centre. However, WAM Capital and Cash Converters shares are certainly worthy of closer inspection at today's prices.
