Yuuge dividends! Check out Platinum Asset Management (PTM) and Telstra Corp (TLS) shares

Platinum Asset Management Limited (ASX:PTM) shares and Telstra Corporation Ltd (ASX:TLS) shares offer huge dividend yields.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Platinum Asset Management Limited (ASX: PTM) shares and Telstra Corporation Ltd (ASX: TLS) shares offer huge dividend yields.

TLS and PTM dividends

TLS dividend

It should be noted, the dividend yields shown in the chart above are trailing. Meaning, the dividend yields are calculated using last year's dividend payments.

So while Telstra and Platinum's trailing dividend yields are much higher than the market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), both companies could cut their dividends in coming years.

Platinum, a funds management business, is expected to cut its yearly dividends from 32 cents to 26 cents, according to Morningstar data. That puts it on a dividend yield of 5.6% fully franked.

Telstra, the telecommunications behemoth, could come under pressure to cut its dividend if it cannot maintain its cash flow and profit as the NBN rolls out. The telco is expected to slightly trim its dividend over the next two years.

Foolish Takeaway

If you are seeking dividends, Platinum and Telstra should be on your watchlist. However, if you are a long term investor it's vital to remember that dividends are a by-product of the company's success. Indeed, you should be focusing on the business' growth prospects first and foremost, then the dividend. I recently wrote an article on Platinum here

Motley Fool Contributor Owen Raszkiewicz owns Platinum shares. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask. The Motley Fool Australia owns shares of Platinum Investment Management Limited and Telstra Limited. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »