Having a portfolio of good quality stocks really helps an investor sleep easy at night. Quality can mean a few different things. For example, quality can mean the management, it can mean a business' brand or perhaps it could mean a business' assets.
I think the below four businesses are high quality with attractive dividend characteristics:
WAM Capital Limited (ASX: WAM) has a high quality and high performing investment team which has resulted in many years of outperforming the market. The listed investment company structure means it can hold onto some profit and pay out a consistently rising dividend.
WAM Capital is trading with a trailing grossed-up dividend yield of 8.26%.
Challenger Ltd (ASX: CGF) is Australia's market leading annuity provider that is heavily benefitting from the number of people entering retirement and seeking secure income from their capital. Management are doing a great job of expanding Challenger's distribution channels.
Challenger is trading with a trailing grossed-up dividend yield of 3.74%.
NIB Holdings Limited (ASX: NHF) is one of Australia's largest private health insurers and is effectively growing its number of policyholders every year. As it grows its market share each year, it has more scale to boost its business each year.
NIB Holdings is trading with a trailing grossed-up dividend yield of 4.26%.
InvoCare Limited (ASX: IVC) is Australia's leading funeral operator with a share of around 33% of the funeral market. Management are effectively growing InvoCare's numerous brands to suit all price points of the market. The number of deaths is sadly expected to continue rising over the next 17 years.
InvoCare is trading with a grossed-up dividend yield of 4.28%.
