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Saturday, 04 July 2009 - 9:44 AM EST

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Downunder Dogs

Flea-bitten may be a bit harsh for some of these stocks but they are nevertheless this month’s Downunder Dogs – the stocks with the highest dividend yields among the largest 50 companies on the Australian Stock Exchange.

So what qualifies them as dogs? If you make the rather simplistic assumption that dividend levels remain more or less stable, then the dividend yield should rise as the share price falls. So by buying companies with high dividend yields you are buying shares that are out of favour – hence, “dogs”. And why would you want to buy a dog? The theory – based on the US stock-picking system known as the Dogs of the Dow – is that this year's dogs often turn out to be next year's prize pooches. Do you own these puppies?

Table 1.

The stocks with the highest dividend yields among the largest 50 companies on the Australian Stock Exchange

Code Company name Market cap Dividend yield Price
GPT GPT Group $4,546,016,524 36.12% $0.49
BSL BlueScope Steel $4,612,943,085 19.37% $2.53
QAN Qantas Airways $4,552,898,476 17.41% $2.01
SUN Suncorp-Metway $8,424,428,982 15.97% $6.70
SGP Stockland $7,590,886,142 14.49% $3.21
MIG Macquarie Infra. $3,234,276,829 13.99% $1.43
TCL Transurban Group $5,361,613,293 13.64% $4.18
IPL Incitec Pivot $3,807,431,982 12.48% $2.38
MAP Macquarie Airports $3,970,089,675 11.69% $2.31
LLC Lend Lease $3,207,582,875 10.98% $7.01

Source: Aspect Huntley.

Table 2.

The stocks with the highest dividend yields among the largest 50 companies on the Australian Stock Exchange (listed property trusts excluded)

Code Company name Market cap Dividend yield Price
BSL BlueScope Steel $4,612,943,085 19.37% $2.53
QAN Qantas Airways $4,552,898,476 17.41% $2.01
SUN Suncorp-Metway $8,424,428,982 15.97% $6.70
MIG Macquarie Infra. $3,234,276,829 13.99% $1.43
TCL Transurban Group $5,361,613,293 13.64% $4.18
IPL Incitec Pivot $3,807,431,982 12.48% $2.38
MAP Macquarie Airports $3,970,089,675 11.69% $2.31
TEL Telecom NZ $4,059,368,914 10.55% $2.18
WES Wesfarmers $16,460,362,450 8.83% $22.65
NAB National Aust. Bank $43,048,218,469 8.65% $22.44

Source: Aspect Huntley.

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