The ASX traded losses on the first two days of the week as investors globally were weary of the Delta variant of the coronavirus and inflation. Following last night’s bullish trading session in the USA, the ASX rebounded today. Healthcare, Financials, and Materials were the top performers – gaining over 1% each. Industrials and IT were the only main sectors that ended the day in the red zone. On the ASX, these high performing sectors are loaded with plenty of value shares – giving investors ample options when looking for the top dividend stocks to add to their portfolios.
ANZ is an Australian multinational banking and financial services company that operates in 33 markets globally with representation in Australia, New Zealand, Asia, Pacific, Europe, America and the Middle East. Coming off an extremely difficult year for the banks and investors in banks with dividends being cut, ANZ’s interim dividend for 2021 was 70 cents per share. The company’s strong earnings, improving environmental conditions and a combination of their strong capital management has given them the confidence to pay this interim dividend. In H1FY21, ANZ’s statutory profit after tax was up by 45% at $2.9mn, driven by a net credit provision release of $491mn. The company has not faced any large credit losses due to the pandemic, in fact they have $4.3bn in their reserve if conditions deteriorate. The company’s capital position and strong balance sheet gives them the flexibility to return surplus capital to shareholders.
With low interest rates continuing to offer favourable operating environments, the run for the banks does not look like it’s over yet, and ANZ is one stock that fits into most investor portfolios. Erasing some of the losses, ANZ shares finished in the green today with a 1.21% increase and closed at $27.65 a share.
Rio Tinto is a well diversified global mining powerhouse that is second in global size, behind only BHP. The firm is dual listed on the ASX and London’s LSE. Rio operates across commodities such as Aluminium, Copper & Diamonds, Energy & Minerals, and Iron Ore. The stock prices of the big 3 miners were being swayed by the sky high iron ore pieces in recent weeks. It’s not just iron ore though, commodity prices across all the commodities that RIO mines have been soaring and the inflation data continues to push it higher. These prices mean that being a producer is the place you want to be in as the cost can be passed over to the customers.
RIO as a result has been driving in the profits from this commodity supercycle that we are a part of. RIO achieved an overall extremely positive first quarter result in 2021 and the company has maintained their guidance across all the commodities it mines. The thick stacks of profits mean that the dividends will once again be extremely high at the end of the year and we expect Rio Tinto to be one of the best dividend stocks as we approach earnings season. RIO shares closed at $125.87 a share today – gaining 1.17%.
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