Although the market selloff has been hugely disappointing, one positive is that it means the yields on offer from some popular dividend shares have just got much wider.
Three dividend shares that I think just became a little more attractive are listed below. Here’s why I like them:
Dicker Data Ltd (ASX: DDR)
This year the Dicker Data board intends to pay an 18 cents per share dividend in quarterly instalments. Following the market volatility this week and a reasonable decline in its share price, this works out to be a fully franked forward 6.3% yield. I’m not the only one that thinks this makes the shares of the leading computer software and hardware wholesale distributor attractive. Chief operating officer Vladimir Mitnovetski has seized on the share price weakness this week and has been buying shares on-market.
WAM Capital Limited (ASX: WAM)
I think Wilson Asset Management’s WAM Capital could be a great option for income investors. After nine consecutive years of dividend increases, the listed investment company’s shares currently offer a trailing fully franked 6.25% dividend. Barring an almighty market crash, I believe in FY 2019 the company will make it a decade of dividend increases judging by the performance of its funds year to date. This could make it well worth considering today.
Westpac Banking Corp (ASX: WBC)
This banking giant’s shares were dragged to a multi-year low of $26.29 on Thursday during the selloff. This means they now offer income investors a massive trailing fully franked 7.15% dividend. I think it is hard to say no to this yield, especially when its shares are trading on some of their lowest multiples in recent years. At this level I feel they have more than priced in the bad news from the Royal Commission and the weakening housing market.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Scott Phillips.