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Date : 29/09/2021

3 Buy-Rated ASX Dividend Stocks For Your Portfolio

3 Top High Dividend Stocks To Buy

The ASX 200 lost 8.90 points or 1.08% to 7,196.70 on Wednesday. Today’s weak performance contributed to extending losses of 1.5% in the previous session and closing at 4-week lows. The risk sentiment soured amid rising long term bond yields ahead of an expected Federal Reserve taper later this year. Furthermore, investors are moving away from growth stocks, while mining heavyweights fell further on fears over production curbs due to a power crunch in China.

Our List of Best ASX Dividend Stocks

If you are an income investor on the lookout for new additions to your portfolio, check out the best ASX dividend shares listed below. These Australian dividend stocks provide above-average yields in the coming years. Here is what you need to know about these 3 buy-rated, high dividend shares:

Super Retail Group Ltd (ASX: SUL)

Super Retail (ASX SUL) is one of Australasia’s biggest retailers. The group has three divisions: auto, outdoor and sports. Today, SUL has grown to one of Australasia’s largest retailers, housing iconic brands including BCF, Macpac, Rebel and Supercheap Auto.

There was a consumer boom during FY21 for numerous reasons, including several impacts from COVID-19 effects. This helped ASX SUL to generate 22% sales growth to $3.45 billion, with online sales rising 43% to $415.6 million.

Super Retail experienced an exceptional FY21 performance. Hence, EBIT surged by 80% to $476.8 million during the period. Accordingly, NPAT jumped by 107% to $306.8 million. We can point out that this performance reflects the ability of the company to meet the online customer demand and shift in consumer behaviour. Whilst FY22 sales were down 14% in the first seven weeks, total online sales had increased by another 62%.

Super Retail Group Ltd (ASX: SUL) is working on a few alternative store formats. This includes the next generation of Supercheap Auto stores, Rebel rCX stores and BCF small format regional stores. Moreover, the company is going to continue to invest in its digital capabilities and improve its delivery efficiencies.

During FY21, Super Retail paid a full-year dividend of $0.88 per share. We expect SUL to continue in this trend with a distribution grossed-up ASX dividend yield of 6.2% in FY22. At the moment of writing, SUL shares are traded at $11.8, making the top of our list of best ASX dividend shares to date.

Origin Energy (ASX: ORG)

From electricity, natural gas to solar and LPG, Origin Energy (ASX: ORG) is a leading provider of energy throughout Australia. It is an integrated company with key operating segments that include exploration, production, generation, and renewable energy.

The Origin Energy share price has stepped into the green this week despite the broad market volatility. At the time of writing, it is trading at $4.72 per ASX dividend share. What move ORG share price since last week? Thus, since the last few days, Origin Energy has appreciated not less than 7%. This happened as the company announced a positive update regarding its UK investment in Octopus Energy.

Origin strategically invested a total of $507 million into Octopus last year, earning it a 20% stake in the UK energy retailer. This was on a valuation of around $2.5 billion at the time.

Yesterday’s release notes that Octopus Energy has received a GBP 211 million investment from Generation Investment Management, a sustainable investment manager. As a result, Origin has today announced it will be adding up an additional GBP 38 million in Octopus to maintain its 20% equity stake. So essentially, Origin Energy has to pay up to keep the gains coming in from Octopus.

Since Origin’s initial investment in Octopus, the position has grown in value to $1.1 billion. Hence, a lucrative 92% return in a relatively short time.

Investors appear to have relished Origin’s successful return on capital and are buying Origin shares in droves on Tuesday.

At the time of writing, today’s trading volume is almost 145 million Origin shares changing hands. This is well above the 4-week average volume of 6.4 million shares exchanging daily.

Apart from being named as one of the best ASX dividend shares that recently gained momentum, Origin is offering an amazing ASX dividend yield of 4.43%.

Westpac (ASX: WBC)

The Aussie banks have been back in favour for a while now. The low-interest-rate environment and reduced regulations around lending have resulted in ASX WBC being able to increase its lending business. It has been a promising start to FY21 with increased cash earnings, growth in mortgages and continued balance sheet strength. First-half earnings were considerably higher than the prior corresponding period, mainly due to an impairment benefit reflecting improved asset quality and a better economic outlook. New lending for housing has surged, up 49 per cent over the past year, including a 75 per cent jump from the May 2020 low. Westpac announced an interim dividend of 58 cents per dividend share considering the positive performance where statutory net profit increased by 189% to $3.4 billion, compared to the previous corresponding period.

We have seen WBC shares performed relatively well given the recent tumultuous market volatility. What we like about this bank is its solid balance sheet. Furthermore, Westpac (ASX: WBC) is also embarking on a strategy to cut costs which should result in increased profitability and thus increased dividends for WBC shareholders. WBC shares complete our list of best ASX dividend shares as they currently trade at $25.17 a share with a solid ASX dividend yield of 3.40%.

Are You Looking To Buy The Best Stocks In 2024?

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Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!

 

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