Steady, dividend-paying investments have become highly prized since interest rates have been pushed to record lows.
Most ASX listed companies pay dividends bi-annually which aligns with their half-year and full-year results reporting. However there are exceptions. For example, listed investment funds sometimes pay dividends quarterly to line up with more frequent reporting of net asset values.
The frequency of dividend payments makes little difference to investment returns, however if you prefer more regular cash flows here are four ASX-listed investments which pay dividends quarterly:
1. ResMed Inc. (CHESS) (ASX: RMD)
Breathing device manufacturer ResMed Inc. is also publicly listed in the U.S. and elects to pay quarterly dividends in line with its quarterly “Form 10-Q” reporting. Quarterly reporting is required by the U.S. Securities and Exchange Commission and includes updated (but un-audited) financial statements.
ResMed has a trailing dividend yield of 2% for the last four quarters.
2. G8 Education Ltd (ASX: GEM)
Roll-up child care operator G8 Education isn’t listed in the U.S., but does elect to pay dividends on a quarterly basis. The company’s strategy has driven aggressive revenue and operating cash flow growth over the last five years.
G8 Education has a trailing dividend yield of 6%.
3. iShares S&P/ASX High Dividend Index Fund (ASX: IHD)
The iShares S&P/ASX High Dividend Index Fund gives exposure to 50 high yielding ASX-listed companies. Its largest holdings are Telstra Corporation Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA). At 15 July the units were trading in line with the fund’s net asset value (NAV).
The fund has a trailing 12-month yield of 4.8%.
4. Rural Funds Group (ASX: RFF)
Rural Funds Group is an investment you may not have come across before, but it’s actually really interesting. The fund is a form of Real Estate Investment Trust (REIT), but focused on agricultural assets like almond orchards, vineyards and cattle property. Lessors include Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV).
At 31 December 2015, the company’s net asset value per unit (NAV) was $1.12, compared to the current unit price of $1.66, but the fund has added significant value since then through acquisitions and land valuation increases.
The fund anticipates a payout of 9.64 cents per unit in FY17, for an enticing yield of 5.8%.
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Motley Fool contributor Regan Pearson has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.