The recent stock market volatility has dragged down the share price of many companies. For astute investors, volatility can represent opportunity. This time is no different and the current volatility has potentially created a number of enticing investment opportunities.
When identifying stocks to add to your portfolio with the primary purpose of providing income, a maintainable level of earnings is a key attribute. This doesn't mean that the company might not experience peaks and troughs in its earnings, but it does mean that the company is able to provide consistency in the dividends it pays out – Wesfarmers Ltd (ASX: WES) is an example of one such stock.
Here are three stocks which have recently experienced share price falls and are offering investors enticing fully franked dividend yields over 5%:
1) Bank of Queensland Limited (ASX: BOQ) is down nearly 8% in the past month. With Morningstar's consensus data showing a forecast dividend of 65.7 cents per share (cps), the forecast yield is a healthy 5.5%.
2) Retail Food Group Limited (ASX: RFG) is only down 3% in the last 30 days but it's enough to have raised the firm's forecast yield to 5.2%.
3) Seven Group Holdings Ltd (ASX: SVW) is down around 6% over the last month. With a steady 40 cps dividend forecast, the stock now trades on a yield of 5.1%.
