Commonwealth Bank of Australia, Westpac Banking, and Australia and New Zealand Banking Group are three of the best paying dividend stocks for creating diversified portfolio income. A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. As a long term investor, I favour these great dividend-paying stocks that continues to add value to my portfolio.
Commonwealth Bank of Australia (ASX:CBA)
Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. Established in 1911, and currently lead by Ian Narev, the company employs 45,614 people and with the company’s market cap sitting at AUD A$141.34B, it falls under the large-cap stocks category.
CBA has a great dividend yield of 5.31% and is distributing 74.28% of earnings as dividends , with analysts expecting this ratio in three years to be 76.48%. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again.
Westpac Banking Corporation (ASX:WBC)
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. Established in 1817, and currently run by Brian Hartzer, the company now has 35,096 employees and has a market cap of AUD A$107.52B, putting it in the large-cap stocks category.
WBC has a enticing dividend yield of 5.92% and distributes 79.00% of its earnings to shareholders as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $1.36 to $1.88.
Australia and New Zealand Banking Group Limited (ASX:ANZ)
Australia and New Zealand Banking Group Limited, together with its subsidiaries, provides various banking and financial products and services to individual and business customers. Founded in 1835, and headed by CEO Shayne Elliott, the company size now stands at 44,896 people and with the company’s market cap sitting at AUD A$85.37B, it falls under the large-cap group.
ANZ has a substantial dividend yield of 5.46% and has a payout ratio of 72.69% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $1.36 to $1.6.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.