The Australian market has been flat over the last week but has risen 17% over the past 12 months, with earnings forecasted to grow by 12% annually. In this context, identifying dividend stocks that offer reliable income and potential for growth can be a strategic way to enhance your portfolio's performance.
Overview: Computershare Limited offers a range of services including issuer, employee share plans and voucher, communication and utilities, technology, and mortgage and property rental services with a market cap of A$15.43 billion.
Computershare's dividend sustainability is supported by a payout ratio of 66.5% and a cash payout ratio of 54.3%, indicating coverage by both earnings and cash flows. Despite an unstable dividend track record, payments have increased over the past decade. The recent ordinary dividend was A$0.42 per share for the six months ending June 2024, with ex-dividend date on August 20, 2024. Earnings growth is forecasted at around 8% annually, though the company carries high debt levels and trades below estimated fair value.
Overview: Perenti Limited is a global mining services company with a market capitalization of A$979.36 million.
Operations: Perenti Limited generates its revenue from three main segments: Drilling Services (A$598.10 million), Contract Mining Services (A$2.54 billion), and Mining Services and Idoba (A$239.06 million).
Dividend Yield: 7.6%
Perenti's dividend payments are supported by a payout ratio of 55.3% and a cash payout ratio of 48.7%, indicating coverage by earnings and cash flows. Despite a volatile dividend track record, payments have increased over the past decade. The recent ordinary dividend was A$0.04 per share for the six months ending June 2024, with an ex-dividend date on October 8, 2024. Additionally, Perenti announced a share buyback program to repurchase up to 93.4 million shares by June 2025, reflecting potential value enhancement for shareholders amidst corporate restructuring efforts and executive changes.
Overview: Shaver Shop Group Limited is a retailer of personal care and grooming products in Australia and New Zealand with a market cap of A$163.11 million.
Operations: Shaver Shop Group Limited generates revenue primarily through retail store sales of specialist personal grooming products, amounting to A$219.37 million.
Dividend Yield: 8.2%
Shaver Shop Group's dividends are supported by an 87% payout ratio and a 48.1% cash payout ratio, indicating they are covered by earnings and cash flows. The company declared a fully franked final dividend of A$0.055 per share, consistent with last year's payout, totaling A$0.102 for fiscal year 2024, or about 88% of net profit after tax. Despite being in the top quartile for yield at 8.19%, dividends have been volatile over its eight-year history with significant insider selling recently noted.
Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:CPU ASX:PRN and ASX:SSG.
