1. Dividend stocks are an important source of passive income. Investors get benefitted via dividend and capital appreciation.
2. Coles and Rio Tinto are two popular dividend stocks in Australia.
Dividend stocks are an important source of passive income. Dividend stocks are those stocks profits investors in the form of dividend and capital appreciation. When it comes to choosing a high-quality dividend stock, investors prefer choosing stocks that provide consistent dividend and are consistent in terms of growth in the percentage of dividend.
Besides, dividend stocks also help in enhancement in investment portfolio and are also less susceptible to market volatility as they are not entirely dependent on major economic cycles.
Australian retailer Coles Group has consistently provided dividend since 2019. The Company made its ASX debut on 21 November 2018. COL is amongst the most trusted brands in Australia and it delivered several DROPPED & LOCKED’ prices to help keep inflation below the national average, a better Flybuys program, as well as free glassware in Supermarkets, together with the popular Price Drops campaign in Liquor.
In 1H FY2023, Coles total sales revenue increased by 3.9% to AU$20.8 billion. The Company’s net profit for the period was AU$616 million, up 11.4% on previous corresponding period
The Company declared an interim dividend of 36 cents in 1H FY2023. It paid AU 30 cents in 2H FY2022. Thus in 2022, the total dividend paid by the Company was AU 66 cents.
Now, in order to earn AU$100 per month from this stock or AU$1200 annually, one should have 1818 shares of the Company. The number is calculated by dividing the amount you wish to earn annually by the dividends announced by the Company in 2022.
RIO Tinto, the producer of copper, gold, iron ore, coal, aluminium, borates, titanium dioxide and other minerals and metals is also a popular dividend stock with history of constantly providing dividends from 2013.
In FY2022, the Company announced total dividend of US 492 cents. Final dividend announced by the Company is US 225 cents. The shareholders may opt to receive theirs in pounds sterling or NZD. Currency conversions will be based on the pound sterling, Australian dollar and New Zealand dollar exchange rates 5 business days before the payment date.
To get US$100 a month from this stock or US$1200 annually, the shareholder should have 244 shares of the Company.
In FY2022, the Company’s revenue decreased by 36% to US$16,134 million compared to FY2021. Net profit also declined by 30% to US$12,420 million.
The uplift in RIO operational performance, strengthening of external relationships along with the investment in the long-term strength of the business would help the Company to continue to pay attractive dividends and invest in sustaining as well as growing the portfolio, while contributing to society's drive to net zero.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com
Apr 10, 2023
Apr 09, 2023
Mar 15, 2023
Mar 10, 2023
Feb 23, 2023
Feb 23, 2023
Feb 20, 2023
Feb 02, 2023
Oct 20, 2022
Oct 20, 2022
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.