Dividend yield scan: 5 high yield stocks set to grow dividends in FY24
Five ASX 300 stocks with trailing yields of over 8% are projected to increase dividends in FY24.
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The dividend yield scan identifies ASX 300 companies that currently have a trailing yield of over 8% as well as those expected to increase dividends in FY24.
There are currently 21 companies with a trailing dividend yield of more than 8%. The data does not include listed investment funds and trusts.
Top sectors include Financials (6) and Energy (4)
The average 1-year share price performance is -15.8%
The median 1-year share price performance is -18.4%
The performance has been weighed by names like APM Human Services (-66%), Abacus Group (-62%), IGO (-52%) and Platinum Asset Management (-51%)
The Highest Dividend Yields
The below data is sorted from highest to lowest yield.
Code | Company | Price | Yield | 1-yr % Chg |
|---|---|---|---|---|
Yancoal Australia | $5.72 | 18.71% | 4.95% | |
New Hope | $5.18 | 13.51% | -2.45% | |
Magellan Financial | $8.64 | 13.51% | -4.32% | |
Platinum Asset Management | $1.06 | 13.27% | -51.38% | |
Zimplats | $21.43 | 13.11% | -27.11% | |
APM Human Services | $0.80 | 12.58% | -66.46% | |
Cromwell Property | $0.41 | 12.09% | -41.84% | |
Myer | $0.75 | 12.00% | -15.25% | |
Helia Group | $4.70 | 11.70% | 76.03% | |
Woodside | $31.17 | 10.90% | -13.08% | |
IGO | $6.91 | 10.71% | -52.44% | |
WAM Capital | $1.51 | 10.30% | -10.42% | |
Centuria Office REIT | $1.28 | 10.24% | -22.02% | |
Whitehaven Coal | $7.51 | 9.85% | -2.97% | |
Incitec Pivot | $2.68 | 9.39% | -22.77% | |
Air New Zealand | $0.60 | 9.16% | -18.37% | |
BSP Financial Group | $7.00 | 8.94% | 50.54% | |
Insignia Financial | $2.22 | 8.92% | -35.65% | |
Abacus Group | $1.08 | 8.74% | -61.74% | |
Fletcher Building Ltd | $3.70 | 8.54% | -25.10% | |
Liberty Financial | $4.21 | 8.50% | 9.35% |
Data as at Tuesday, 12 February 2024 (Source: Refinitiv)
5 Stocks to Grow Dividends
There are five stocks forecast to grow their dividend payouts in FY24. This includes:
Yancoal
Myer
Helia Group
Incitec Pivot
Insignia Financial
We'll take a closer look at Incitec Pivot this week. You can check out the commentary for the other four stocks here.
Incitec shares are down 24% in the past twelve months and down around 9% since December 2023. The company announced a mixed update at its AGM on 21 December. Here are some of the key takeaways:
Incitec faces prolonged negotiations for the sale of its fertiliser division to state-owned Indonesian group Pupuk Kaltim. Nonetheless, analysts expressed confidence in the company's ability to successfully execute large-scale asset sales, as demonstrated by the completion of the WALA sale.
The delay in the fertiliser business sale has pushed back substantial capital returns to shareholders including a $500 million on-market buyback and $500 million in capital returns (by way of capital reduction and special dividend)
The outlook for IPL's explosives business remains positive supported by the Australian ammonium nitrate pricing and successful repricing contracts, indicating a potential return to peak earnings in FY24
Putting it all together – Incitec Pivot is expected to maintain its dividend despite cycling very strong commodity prices from FY22. Analysts expect the fertiliser business sale to progress, which should deliver a one off capital return to shareholders. Despite the sound outlook for FY24, the company's dividend is forecast to fall from FY25. All-in-all, the dividend yield might be sustainable in FY24 and propped up by one-off distributions but expected to fall over the medium term.
