Hello everyone! This is Sage, live from Kalkine Studio. And you are watching ‘The Buzzing Trends’-
a show that brings to you the emerging trends driving the market momentum and
the related stocks under the spotlight. income seekers are closely eyeing dividend stars
in the share market amid overall market uncertainty., in today’s show I am going
to give you a glimpse of why and how choosing hot dividend stocks, especially the fully franked ones, is
important., I will also touch upon few blue-chip shares with fully franked dividends on ASX. So, let’s get
started. market uncertainties are mounting this year amid virus woes, crypto volatility
and monetary policy easy concerns. Inflation anxiety and economic sustainability are
also denting the market sentiments. At its most basic level, dividends are a form of
profit-sharing for the investment made by shareholders in the business. the franked
dividend is an important concept to understand, to combine with high dividend yield criteria,
while looking at dividend stocks. Since the companies pay dividends to the shareholders
out of the profits earned, that means dividends have already been subject to tax at the corporate
level. So, a shareholder receiving the dividend should not be obliged for the tax on that
dividend when it comes to paying individual income tax. Franked dividends are like icing
on the cake; they provide tax relief for the investors. Franked dividends come with a tax
credit attached, to eliminate the issue of double taxation of dividends for investors.
Therefore it reduces the tax burden on investors. here is
a list of 10 ASX listed blue-chip stocks providing fully franked dividends. First
on the list is the BHP Group, the leading global resources company has consistently
provided dividends since 2012. It provided a fully franked interim dividend of AU$1.3 on
23 March 2021. And it has an annual dividend yield of 4 per cent. BHP’s dividend
payments are relatively stable, and it has decent prospects for growing its earnings
and dividend. For the nine months ended 31 March 2021, the Company attained record production
at Western Australia Iron Ore and the highest average concentrator output delivered at Escondida.
Currently in the financial year 2021, its production guidance for petroleum and iron ore remains
the same, while copper guidance has increased. Second on the list is Rio Tinto
the producer of copper, gold, iron ore, coal, aluminium, borates, titanium dioxide
and other minerals and metals. Rio provided a fully franked final dividend of AU$5.17
on 14 April 2021. Well, the Company has consistently provided dividends since 2011. Its current
annual dividend yield stands at 5.6 per cent. In the first quarter of the financial
year 2021, Rio achieved an overall solid operating performance. It maintained its guidance
ranges in all our products. Next, market players are also keenly eyeing Commonwealth Bank
of Australia when it comes to screening exciting fully-franked dividend stocks. They are
largest provider of integrated financial services in Australia. CBA has consistently provided
dividends since 2012. It provided a fully franked interim dividend of AU$1.5 on 30
March 2021 for the six months ended 31 December 2020. And it has an annual dividend
yield of 2.5 per cent. Looking at the latest operational updates, CBA decided to sell the
Australian general insurance division to South Africa-based Hollard Group. At the same time,
CBA established its 15-year strategic partnership with Hollard to distribute home and motor
vehicle insurance products to its retail clients in the country.
next we look at another big 4 banking player- Westpac Banking Corp. Westpac is the oldest bank
in Australia and amongst the largest bank in New Zealand. Westpac has consistently provided
a dividend to its shareholders since 2013. It provided a fully franked interim dividend
of 58 cents on 25 June 2021. It was 100 per cent franked with Australian franking
credits at the company tax rate of 30 per cent. Westpac shares carry an annual dividend
yield of 2.5 per cent. On 6 July 2021, Westpac signed a deed with Fidelity Life Assurance
to unload Westpac Life-NZ. They also it signed an exclusive 15-year deal to distribute life
insurance products to their NZ clients. And now its time for a short break. Stay tuned
with us, as we will take a look at more interesting fully franked dividend stocks on the Australian
stock exchange. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Hi welcome back, I am Sage and you are watching The Buzzing Trends- where we are
discussing hot fully franked dividend stars. The National Australia Bank
Well, National Australia Bank is one of largest banks in Australia, it offers banking,
financial and related services. The NAB has consistently provided dividends since 2011.
In the first half of the financial year 2021, the Company provided a fully franked interim
dividend of 60 cents per share. NAB shares carry an annual dividend yield of 3.5 per
cent. Next under the radar is Australia and New Zealand Banking Group.
The ANZ offers banking & financial products as well as services to individual and business
clients. Since 2012, ANZ has consistently provided dividends. The Company provided
an interim dividend of AU$70 cents on 1 July 2021. Their shares carry an annual
dividend yield of 3.8 per cent. Moving on, Fortescue Metals Group is another
exciting full-franked dividend stock. The group is into mining, processing, and transporting
iron ore for export from its deposits within the Pilbara region of Western Australia. The
company has constantly provided dividends since 2011. In the first half of the financial
year 2021, the Company provided a fully franked interim dividend of AU$1.47. Fortescue
Metals shares carry an annual dividend yield of 9.6 per cent. Recently, Fortescue
Future Industries reached its 30 June 2021 targets for early decarbonisation projects. Next,
let us zoom our lens on Wesfarmers. The Australian conglomerate has consistently
provided dividends since 2012. In the first half of the financial year 2021, the
Company provided an interim dividend of 88 cents. And Wesfarmers shares offer an annual
dividend yield of 3 per cent.
It has submitted a non-binding, indicative offer to the Board of Australian Pharmaceutical
Industries to purchase 100 per cent at AU$1.38 via a scheme of arrangement. Moving
on, the Woolworths Group also deserves a special mention. The food, general merchandise,
and specialty retailer has consistently provided dividends since 2011. The Company provided
an interim dividend of 53 cents on 14 April 2021. And its shares offer an annual
dividend yield of 2.3 per cent. Woolworths recently undertook the demerger of Endeavour Group. Following
the demerger, market analysts are expecting Woolworths to have higher cash flow generation, with a
lightly geared balance sheet providing optionality. it is expected to release bumper dividend post Endeavour
merger, with a strong online channel also supporting the prospects. The tenth stock
on the list is Aristocrat Leisure. They plan,
develop, manufactures and market various products & services involving electronic gaming machines,
casino management systems, and digital social games. The Company has provided dividends
since 2011. It provided a fully franked interim dividend of AU$15 cents on 2 July
2021. its shares carry an annual dividend yield of 0.6 per cent. In the first
half of financial year 2021, the Company delivered an 18.4 per cent growth in its
net profit after tax. I hope you found that informative. We have another Buzzing
Trends show at 3:45 pm today bringing more interesting market trends for you.