If you had been invested in the banks and Telstra Corporation Ltd (ASX: TLS) over the last year or so, the dividend yield would have been more than wiped out by share price losses. An unfortunate lesson for investors that it is not all about the yield, but it is possible to find dividend payers that are less likely to have dramatic share prices falls, which also means dividend yield will be more stable. Dividend yields in the 10% range are less likely to be sustainable and especially if the share price has been falling leading to the pick up in yield.
Companies paying dividend yields that are more in the moderate range, may reflect the quality of the management, which supports the share price.
Some of those companies include:
Macquarie Group Ltd (ASX: MQG) is embarking on a high net worth (HNW) focus by merging its private bank and wealth division. There is a growing number of HNW individuals in Australia, either homegrown or a increasing number from migration. The annual dividend yield is 5% fully franked.
Platinum Asset Management Ltd (ASX: PTM) is also paying an annual dividend yield of 5% fully franked. The share price has come off on the stepping down of Kerr Neilson, founder and CEO. But, recent data from the company shows that funds under management are growing again after falling following the Neilson announcement. The company continues along the path it has always been on, as Neilson remains involved as a full time executive director and investment team member.
Super Retail Group Ltd (ASX: SUL) has acquired MacPac recently, which will boost earnings for FY18. Super Retail specialises in retailing of Auto, Leisure and Sports' products. The company is aiming to simplify its retailing strategy with the merger of Amart back into Rebel Sports. The annual dividend is 5.4% fully franked.
