Recently I've been scouring the ASX looking for certain types of stocks. I haven't found many, but because of the criteria I'm using, I turn up a lot of companies with very high dividend yields. You can read about some of the previous ones here and here, but these are the most recent high-yielding dividend stocks I've turned up:
Garda Diversified Property Fund (ASX: GDF) – yields 8.6% unfranked
A relatively recent listing, Garda Property Fund is unusual in that it is one of few ASX-listed companies trading at its book value per share. The company's net tangible assets (NTA) were $1.11 at 31 December 2016, approximately in line with its current share price.
Garda operates a portfolio of 84% commercial and 16% industrial real estate on the east coast of Australia. Top tenants include government bodies and road + construction company Fulton Hogan. Debt is moderate, and with an 8.6% yield and trading at book value, Garda could be worth a closer look.
Village Roadshow Ltd (ASX: VRL) – yields 8% fully franked
Village Roadshow's trailing dividend yield of 8% fully franked, as shown by some brokerage websites and Google Finance, is an illusion. Due to a blow-out in debt, management recently suspended the half-year dividend, and are considering asset sales to take control of an 'unacceptable' level of gearing. Sales at the company's theme park division are also well below recent years due to cyclones and the tragedy at competing theme park Dreamworld.
Village Roadshow could be worth a closer look as it sorts itself out, but buying it for the dividend, while business is struggling and debt is high, would be a mistake in my opinion.
RCG Corporation Ltd (ASX: RCG) – yields 9% fully franked
RCG Corporation shares have been hammered following two downgrades in recent times. While the downgrades were relatively modest, investors have fled the stock, perhaps in fear that more downgrades are in the offing. As a result, shares have halved in the past year and the dividend on offer will (if maintained at previous levels) have doubled.
It would be wise to factor in a reduction in the dividend because of the recent earnings downgrades, but the resulting dividend should still be miles above the ASX average. At today's prices RCG could be worth a closer look for dividend investors.
