How to Buy Dividend Stocks in Australia – Step by Step Guide

How to Buy Dividend Stocks in Australia – Step by Step Guide

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 How to Buy Dividend Stocks in Australia – Step by Step Guide. Our article will give you a lot of information concerning Divdned Stock what you really need to know. you are humbly welcome to   Xcoinshall .

Dividend investing provides investors with two potential sources of profit: regular dividend payments and stock capital gain over time.

Investing in dividend stocks can help people generate income or increase their wealth by reinvesting dividend payments.

Buying dividend stocks is a strategy that may appeal to investors looking for lower-risk investments.

Dividend-paying stocks are some of the least volatile to own.

However, there are still risks to be aware of, and dividend stocks can be risky if you don’t know what to look out for.

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What exactly are dividend stocks?

Let us start from the beginning and define dividends.

A dividend is essentially a cash payment made by a corporation to an investor, and it is calculated using the number of shares held by the investor and the company’s declared dividend per share.

Take, for example, the Commonwealth Bank. During the reporting season, it announced that it would pay investors 98 cents per share.

Dividends would be paid to an investor who owned 100 bank shares and received dividends totaling $98.

A dividend is a distribution of a portion of a company’s earnings to a class of shareholders selected by the board of directors.

Common shareholders of dividend-paying companies are usually eligible as long as they own the shares before the ex-dividend date.

 

Is it worthwhile to invest in dividend stocks?

Dividend-paying stocks provide income to investors even when the market is volatile and capital gains are difficult to come by.

They are an excellent inflation hedge, especially when they grow over time.

They are tax-advantaged, unlike other forms of income, such as interest on fixed-income investments.

How to Buy Dividend Stocks in Australia – Step by Step Guide

How many shares are required to receive dividends?

The dividend per share (DPS) calculation shows how much the company paid out in dividends for each share of stock during a specific time period.

Keeping track of a company’s dividend payout ratio (DPS) allows an investor to determine whether a company’s payouts can be increased over time.

 

Where Can I Buy Dividend Stocks in Australia?

To be a stockholder of record and thus eligible to receive the dividend for this quarter, one must purchase the stock before the ex-dividend date.

You will not receive the dividend if you purchase the stock on or after the ex-dividend date.

 

In Australia, when are dividends paid?

Dividends are typically paid twice a year.

A portion of the company’s profits are divided and distributed to shareholders in proportion to the number of shares they own.

 

Top 11 Monthly Dividend Paying Stocks

The following are the different  dividend stocks in Australia, viz;

1. The Fortescue Metals Group (Fortescue Metal)

The first in our list on dividend stocks in Australia is the FMG’s stock. It has risen in value over the last two years as iron ore prices have risen, and the miner now has a market capitalization of more than $55 billion.

In the fiscal year 2020, FMG will pay out AUD 1.76 per share in dividends. Dividends would rise even further in 2021, when the miner would pay total dividends of $3.58 per share.

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Link To Brokers Website

 

2. AGL Energy 2020 has proven to be a difficult year for AGL shareholders.

The stock has dropped more than 30% since January as wholesale electricity prices have plummeted, reducing the energy provider’s earnings. The stock’s decline continued into CY21, with a drop of 48% from January to September 2021. This is one of the dividend stocks in Australia.

Despite the stock’s decline, the energy company’s dividend stocks has remained relatively stable. AGL’s most recent dividends were $0.34 per share and $0.41 per share, respectively.

Link To Brokers Website

 

3.  Dynex Capital, Inc. (NYSE: DX)

Dynex Capital, Inc is one of the dividend stocks in Australia. Dynex Capital, Inc. (NYSE: DX) is a real estate investment trust based in Virginia (REIT). One of its subsidiaries, Issued Holdings Capital Corporation, ranks 3rd on our list of the best companies that pay monthly dividends.

At the end of the second quarter of 2021, nine hedge funds out of 873 tracked by Insider Monkey had a $27 million position in Dynex Capital, Inc. (NYSE: DX).

In the previous quarter, 8 hedge funds held a total position worth approximately $24 million.

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Link To Brokers Website

 

4. Stockland

The fourth on our list of dividend stocks in Australia is the Stockland. Despite the disruptions caused by the coronavirus pandemic, Stockland has kept its distribution payments consistent.

As part of its most recent results, Stockland announced a final payout of $0.13 per share, bringing total distributions for the year to $0.246 per security, a 2.1 percent increase year over year.

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Link To Brokers Website

 

5.  LTC Properties, Inc. specializes in real estate development and management (NYSE: LTC)

LTC Buildings, Inc. (NYSE: LTC) is another stock on our list of dividend stocks in Australia. It is a healthcare real estate investment trust that invests in seniors housing and healthcare assets through sale-leasebacks, mortgage financing, joint ventures, and structured finance solutions such as preferred stock and mezzanine credit.

The company ranks 5th on our list of Dividend Stocks in Australia.

Ten hedge funds out of 873 tracked by Insider Monkey had $9 million in LTC Properties, Inc. (NYSE: LTC) positions as of the end of the second quarter of 2021.

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Link To Brokers Website

 

6. Prospect Capital Corporation (NASDAQ: PSEC)

Prospect Capital Corporation (NASDAQ: PSEC) is a business development firm that specializes in middle market, mature, mezzanine finance, later stage, emerging growth, and other transactions.

The company ranks sixth on our list of the best Dividend stocks for monthly dividends. The headquarters of the company are in New York.

Prospect Capital Corporation (NASDAQ: PSEC) is another stock on this list of dividend stocks in Australia.

Link To Brokers Website

 

7. Broadmark Realty Capital, Inc. (NYSE: BRMK)

This is another stock on this list of dividend stocks in Australia. Broadmark Realty Capital Inc. (NYSE: BRMK) underwrites, funds, services, and manages a short-term and first deed of trust loan portfolio in the United States to fund the development of residential and commercial buildings. It is among the  Dividend Stocks in Australia.

Broadmark Realty Capital, Inc is another stockbroker on our list of dividend stocks in Australia.

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Link To Brokers Website

 

8. Gladstone Land Corporation (GLDC) (NASDAQ: LAND)

Gladstone Land Corporation (NASDAQ: LAND), a publicly traded REIT, is the next stock on our list of the top Dividend stocks that pay monthly. The eighth-ranked corporation buys and owns farmland in the United States to lease to third-party farmers. This is another notable dividend stocks in Australia.

Gladstone Land Corporation (NASDAQ: LAND) reported a second-quarter FFO of $0.13. Revenue was $16.89 million, a 33.67 percent increase over the previous year and $0.28 million more than expected.

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Link To Brokers Website

 

9. ARMOUR Residential REIT, Inc. (NYSE: ARR)

ARMOUR Residential REIT, Inc. (NYSE: ARR) is a US-based mortgage-backed securities (MBS) REIT. The company is based in Florida and is ranked ninth on our list of the top stocks that pay monthly dividends stocks. This is another notable dividend stocks in Australia.

B. Riley has a Neutral rating on ARMOUR Residential REIT, Inc. (NYSE: ARR) with a price target of $11.50 as of July.

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Link To Brokers Website

 

10. Aurizon Holdings Corporation.

The Aurizon holding corporation is among the largest rail transportation in Australia. Despite lower revenue and profitability (EBIT) in FY21, Aurizon’s dividend stocks increased in 2021.

The corporation declared a final dividend of $0.144 cents per share, which is 5% higher than the final dividend declared in 2020. The dividend for the fiscal year (FY21) increased by 5% to $0.288 per share. This is also another notable dividend stocks in Australia.

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Link To Brokers Website

 

11. STAG Industrial, Inc. is an industrial equipment manufacturer (NYSE: STAG)

The last on our list of Dividend Stocks in Australia is the STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust (REIT) based in the United States that specializes in single-tenant industrial buildings.

Insider Monkey tracked 873 hedge funds, and fifteen of them had a $232 million position in STAG Industrial, Inc. (NYSE: STAG).

17 hedge funds were involved in the previous quarter, with a total investment of about $173 million.

The years 2020 and 2021 have proven to be highly volatile for Australian and global markets.

In response to new regulatory guidance and other calamitous events, several dividend stalwarts, including the Big Four banks, were forced to reduce or discontinue their payouts.

While the banks’ dividends have already been recovered (to some extent), investors are likely to be more aware of the regulator’s strength.

 

Hope our article on How to Buy Dividend Stocks in Australia – Step by Step Guide have help you with a lot of information about Divided Stock in Australia. Follow our website for more interesting articles.

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