Insights

3 ASX dividend shares with yields above 5%

The three ASX dividend shares in this article have dividend yields above 5%. 1 example of a high-yield share is Magellan Financial (ASX:MFG).
The post 3 ASX dividend shares with yields above 5% appeared first on Motley Fool Australia. –

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

Some investors may be turning to ASX dividend shares to boost their income in this era of very low interest rates.

The Reserve Bank of Australia (RBA) has pushed the official interest rate to almost 0%. But ASX dividend shares are known for offering higher yields than bank accounts.

Here are three examples of businesses that have dividend yields of 5% or more:

Magellan Financial Group Ltd (ASX: MFG)

This is a funds management business which has billionaire Hamish Douglass at the helm as both the chair and chief investment officer (CIO).

The Magellan share price has risen by around 140% since the start of 2019, which was comfortably higher than the return of the S&P/ASX 200 Index (ASX: XJO).

In FY20 it paid a total annual dividend of 214.9 cents per share which, when franking credits are included, amounts to a grossed-up dividend yield of just over 5%. That dividend was 16% higher than what was paid in FY19.

Magellan has a high dividend payout ratio, which contributes to its dividend yield being more than 5%. It generated diluted earnings per share (EPS) of 218.3 cents, meaning that Magellan’s payout ratio was 98.4%.

In FY20 its average funds under management (FUM) was up 26% to $95.5 billion. Magellan’s FUM at the end of September 2020 was 7% higher than the FY20 average at just over $102 billion.

The fund manager also recently invested in a new investment bank called Barrenjoey.  

Growthpoint Properties Australia Ltd (ASX: GOZ)

Growthpoint Properties is an ASX real estate investment trust (REIT) which invests in “high-quality industrial and office properties across Australia.”

The REIT recently gave an update for the first quarter of FY21. It said that its weighted average lease expiry (WALE) increase to 6.4 years and the portfolio occupancy increased to 96%.

Growthpoint revealed that billings remained “strong” with more than 99% of FY21 first quarter total billings collected to date.

Management boasted of having a robust balance sheet, with gearing of 32.2% well below its target range.

Growthpoint Properties’ FY21 distribution guidance was reaffirmed at 20 cents per share, which equates to a distribution yield of 5.6% for the ASX dividend share.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is the third ASX dividend share example in this article.

The electronics retailer has increased its dividend every year in a row going back several years.

JB Hi-Fi’s growth has accelerated during the COVID-19 period. In FY20 it generated total sales growth of 11.6%, underlying earnings before interest and tax (EBIT) and underlying net profit after tax (NPAT) grew by 33.2%. Underlying EPS went up 33.2% to 289.6 cents.

The profit growth assisted the ASX dividend share’s annual FY20 dividend growth of 33.1% to 189 cents.

JB Hi-Fi has recently delivered a FY21 first quarter sales update. It said that in the three months to 30 September 2020, JB Hi-Fi Australia total sales growth was 27.3% with comparable sales growth of 27.6%.

JB Hi-Fi New Zealand total sales declined by 2.5% with a comparable sales decline of 2.5%.

The Good Guys also reported that its total sales grew by 30.9% with comparable sales growth of 30.9%.

The electronics retailer announced that with the lifting of the Victorian Government’s stage 4 restrictions, 46 JB Hi-Fi stores and 21 The Good Guys stores have all reopened on 28 October 2020.

At the time of the first quarter update, JB Hi-Fi CEO Richard Murray said: “Our online businesses have continued to scale and meet the needs of our customers in a period where restrictions have impacted their ability to visit our stores. This online growth combined with continued sales momentum in stores across the rest of Australia, has resulted in a strong start to FY21 and positions us well as we enter the key Christmas trading period.”

Using the current JB Hi-Fi share price, it has a trailing grossed-up dividend yield of 5.6%.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 ASX dividend shares with yields above 5% appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!