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Today, we’ll look at some of the best dividend-paying stocks on the ASX for 2020.
Not only are most of these stocks high yield, but most of them have been growing their dividends year on year – or will likely grow them in the near future.
In fact, we use high dividend yield stocks such as these along with options income strategies to generate lots of income for our clients.
If you are looking for Australian dividend stocks that have a strong and predictable dividend yield and prefer dividend investing, the best place to look is for companies that are mature and dominant in their field.
If you are looking to buy Australian dividend stocks for the long-term and looking for strong stable dividend yield, these are some of the best dividend stocks to buy now on the ASX for 2020.
Please note that all the dividend yields are quoted grossed up. This means it includes the franking credits and will also be higher or lower depending on the share price on the day.
Best Dividend Stocks To Buy Now
The hardest part when it comes to dividend investing is to uncover shares that have the strongest most predictable revenue lines and are market leaders in their field.
Without a doubt, some of these best dividend-paying stocks will be familiar names to you and form the bedrock of many Australian stock portfolios.
Our Research team has been hard at work finding the best dividend stocks to buy now in Australia for dividend investing.
I’ve outlined 5 stocks that we feel represent some of the best dividend stocks in the Australian market.
Seek Limited (ASX SEK)
Seek is the dominant Australian online recruitment, employment and training advertiser.
The company is growing its revenues strongly year on year and dividends have been steady as the company matures.
With a strong, entrenched and dominant business, Seek is a good blue-chip, longer-term investment which should see continued revenue growth.
Even though Seek has not grown its dividends in the past 2 years, revenue growth has been strong – so we can expect dividends to follow soon.
Read more about Seek Limited (ASX SEK) here.
Commonwealth Bank (ASX CBA)
Yes, I know this one is obvious – but it is definitely one of the best, most stable blue chips you can buy for income.
Since coming out of the Royal Commission relatively unscathed, the CBA share price has rebounded and even reached above $80 a share.
Even at this price level, CBA is yielding a massive 7.56% grossed up.
Read more about why we like Commonwealth Bank (ASX CBA) here.
CSR Limited (ASX CSR)
CSR is an Australian listed company that manufactures and sells building products, aluminium, and house design solutions.
CSR has seen a strong year on year EPS growth with a lower PE ratio than its peers. CSR has a built their business towards sustainability which is in line with new homeowner demand and a good stock to be in for dividend investing.
CSR is currently paying about 7.04% in dividend yield and even though its dividend has fallen year on year, the yield is still strong and is a great Australian dividend stock.
Medibank Private (ASX MPL)
Medibank Private (ASX MPL) is an Australian-based private health insurance provider. Medibank is in the business of underwriting and distribution of private health insurance policies through the Medibank and ahm brands.
Since this is such a stable industry, Medibank can be considered one of the most stable dividend shares with predictable revenue.
We consider Medibank to be a reliable blue-chip stock for dividend investing with a strong dividend yield of about 7%.
Read more about Medibank here.
Wesfarmers (ASX WES)
Wesfarmers is one of the largest companies in Australia and owns the very successful Bunnings brand.
Wesfarmers has run into some trouble recently with a failed Bunnings UK business and a resurgent Woolworths (ASX WOW) which has put pressure on their supermarket business.
However, they have now cut the Bunnings UK business and just divested their mature Coles business.
This means there is a lot of flexibility ahead for Wesfarmers to perform even better.
Wesfarmers currently pays about 9% in dividend yield. Dividend growth is still very strong at around 25%.
We can expect dividends to grow even stronger from here on out and this stock is considered to be one of the best dividend shares.
Read more about Wesfarmers here.
