Dividend Yield Scan: 4 high yielding stocks with growing dividends

The weekly dividend yield scan locates ASX 300 companies with a trailing yield of more than 8% and identifies the ones forecast to raise dividends in FY24.

There are currently 28 companies with a trailing dividend of more than 8%.

• 13 companies are from the Financials sector (including 7 investment funds and trusts)

• The average twelve month performance is -14.3%

• APM Human Services and Heartland Group joined the list (compared to last week)

• KKR Credit Income Fund dropped out (but trailing yield remains high)

The Highest Dividend Yields

The below data is sorted from highest to lowest yield (excluding listed investment funds and trusts).

Data as at Monday, 22 January 2024 close (Source: Refinitiv)

And a separate list for the relatively illiquid funds and trusts.

Data as at Monday, 22 January 2024 close (Source: Refinitiv)

Four Stocks Forecast to Grow Dividends

Only four stocks (ex-funds and trusts) are forecast to grow their dividend payouts (dollar amount) in 2024, unchanged from last week's scan. This includes:

• Yancoal: The $7 billion market cap Yancoal is known for its massive dividend yield, backed by strong earnings. It delivered $973 million in first-half FY23 profit after tax and paid out just over half of that as an interim dividend ($489 million or 37 cents per share).

• Myer: The past 12-24 months has been a massive turnaround for Myer. Its FY23 results reported net profit after tax of $71.1 million, the highest since FY15. The company paid out 9 cents per share in FY23, which includes a 4.0 cents per share special interim dividend.

• Helia Group: Macquarie expects gross written premiums for the insurer to decline and remain under pressure in FY24. The analysts expect earnings to fall 27% year-on-year in FY24 but expect the company to keep dividends in-tact (via a higher payout ratio).

• Insignia Financial: Insignia is a tricky one as its current CEO is set to depart in February 2024 coupled with the rollout of FY24-26 initiatives. The stock sold off 13% on 20 October 2023 after its 1Q24 business update flagged net funds under management and administration outflows of $1.4 billion.

Yancoal reported its December quarter report last week, with the following highlights:

• Produced 18.1 million tonnes of coal for the quarter and marks the fourth consecutive quarter of higher output

• Cash holdings rose $477 million to $1.4 billion as at 31 December 2023

• That's an annualised free cash flow yield of around 27% (for illustrative purposes only as cash flows are subject to change)