These are the best Dividend Stocks to invest on the ASX. These Dividend Stocks will produce monthly passive income for years to come and provide a steady dividend stream for Australian Investors.
In this video, I adjust the dividend yields based on the stock price at the time that they paid out. So that way, it’s a much closer predictor of the dividend yields for that stock. A couple of conditions for my filter is that the dividend yield must be more than 5%, and its dividend stability must be more than 90% as per Commsec Ratings. And that means that it hasn’t really missed a payment in the last 10 years and has been pretty consistently paying dividends.
This list is going to organised by the month of payout, so if you own a few of these, then they’ll pay out every month which feels more like a salary being paid and that’s always a good thing.
Dividend franking is something that only Australia, New Zealand and only a few other countries have. So the US actually don’t have this tax benefit. Any dividends paid to shareholders gets double taxed. And for this reason, US stocks have much lower dividends than ASX stocks as they prefer to invest and grow their share price instead.
Dividend hunting is the practise of buying stocks on the day that it goes ex-dividend, holding it for one day then selling off straight away. This qualifies you to get the dividend but the share price usually jumps up on the ex-date, then falls the following day. And that fall is usually around the dividend yield anyway so the gain in getting an instant dividend actually cancels out against your capital gains loss. So this is something that I don’t really recommend.
Dividend Reinvestment Plans or DRIP on the other hand are something I definitely encourage. It lets you receive more shares in the company instead of getting paid in cash. The reason why it’s good is because it’s brokerage free, and you get a discount on the market price of the share, so even if you sell it straight away, you’ll still make more than getting a cash dividend. Keep in mind that DRPs are still taxed as if you did take the cash though.
Free Range by Mona Wonderlick
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The information on this video is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.