Top ASX Dividend Stocks to Consider This Week
On Friday, the ASX 200 finished the week on a positive note. The benchmark climbed to 7,522.9 adding up half a per cent gain. We expect the market to start slowly this week on low volume, however, the ASX 200 looks set for the continuation of the rebound on Monday, despite following a largely disappointing end of the week in the US, which saw the Dow Jones declining by 0.2% along with the S&P500 edging lower. Weak economic data in the US put some pressure on stocks. Nevertheless, looking at the long-term perspective, there are plenty of opportunities, especially, right now if you’re looking for a way to beat low-interest rates, then you may want to look at these two stocks that pay generous dividends each year. Two such ASX Dividend Stocks are listed below. Here’s what you need to know about these dividend shares.
Our list of top ASX Dividend Shares to consider this week
Fortescue Metals Group (ASX: FMG)
Fortescue Metals Group is an Australian iron ore company. As of 2017, FMG is the fourth largest iron ore producer in the world after BHP, Rio Tinto, and Vale. The group has two main areas of operation located within the Pilbara region of Western Australia, the Chichester Hub and Solomon Hub. Plans to develop a third, Western Hub are currently in the developmental stage. In 2017 Fortescue started the exploration of possible mining tenements in South America and other parts of Australia.
At the time of writing, FMG shares are down almost 11% to $18.57. This latest decline means that the FMG share price is now down about 30% from its record high of $26.58 it reached at the end of July. Even though it is quite a decline in the share price, we see it as a great opportunity if you want to acquire a stock that offers an amazing 10% dividend yield. Furthermore, for shareholders, the weakness in the FMG share price on Monday has nothing to do with its operations or the iron ore price. In fact, the latter rose 3.8% on Friday night. Rather, this sizeable decline has been driven by the company’s shares going ex-dividend this morning for its upcoming final dividend payment. When a share trades ex-dividend, it means it is trading without the rights to an impending dividend payment. As a result, a share price will usually drop in line with the dividend amount to reflect the fact that new buyers of the shares will not be receiving it.
FMG shares closed today at $18.57 a share and is one of the best ASX dividend stocks to consider right now.
National Storage REIT (ASX: NSR)
Another dividend stock to look at is National Storage (NSR). It is one of the ANZ region’s largest self-storage operators with a portfolio of over 210 centres. NSR had its debut on the ASX forming National Storage REIT in December 2013. It is the first publicly listed independent, internally managed, and fully integrated owner and operator of self-storage centres in Australia. NSR offers a wide array of self-storage, business storage, climate-controlled wine storage, vehicle storage, vehicle and trailer hire, packaging, insurance, logistics and other value-add services.
NSR recently released its full-year results and revealed a 28% increase in underlying earnings to $86.5 million. This was driven by a combination of organic growth and the benefits of acquisitions. This allowed the company to pay a full-year distribution of 8.2 cents per share. Another strong year is expected in FY22, with management guiding to underlying earnings per share growth of at least 10%. It is also worth noting that NSR has approximately $900 million of investment capacity to fuel its growth by acquisition strategy. Based on the current NSR share price of $2.40, if its distribution grows by about 10% to 9.02 cents per share, it will mean that National Storage will offer a lucrative yield of 4%. On top of a growing dividend yield, NSR continues its impressive bullish momentum, taking the year-to-date share price appreciation to 26.3%.