Collection House, Silver Chef, and AVJennings are three of the best paying dividend stocks for creating diversified portfolio income. Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. As a long term investor with a short term temperament, I highly recommend these top dividend stocks.
Collection House Limited (ASX:CLH)
Collection House Limited provides debt collection and receivables management services in Australia and New Zealand. Founded in 1992, and currently lead by Anthony Rivas, the company size now stands at 821 people and with the stock’s market cap sitting at AUD A$169.35M, it comes under the small-cap stocks category.
CLH has a substantial dividend yield of 6.24% and is paying out 60.72% of profits as dividends . In the case of CLH, they have increased their dividend per share from $0.02 to $0.08 so in the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. More on Collection House here.
Silver Chef Limited (ASX:SIV)
Silver Chef Limited engages in the rental and financing of commercial equipment in Australia, New Zealand, and Canada. Founded in 1986, and headed by CEO Damien Guivarra, the company size now stands at 400 people and has a market cap of AUD A$272.13M, putting it in the small-cap group.
SIV has an alluring dividend yield of 5.48% and distributes 68.70% of its earnings to shareholders as dividends . SIV’s dividends have seen an increase over the past 10 years, with payments increasing from $0.1 to $0.38 in that time. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 60.17%. Interested in Silver Chef? Find out more here.
AVJennings Limited (ASX:AVJ)
AVJennings Limited engages in the development of residential properties in Australia. The company was established in 1932 and with the market cap of AUD A$276.18M, it falls under the small-cap category.
AVJ has a large dividend yield of 6.94% and is currently distributing 53.70% of profits to shareholders . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.03 to $0.05. More on AVJennings here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.