If you own shares for income, or simply love the reward of a regular dividend, you probably could rank your top companies in an 'All-Star' line-up if you will.
There are hundreds of companies jostling for a position on your All-Star team, but as owner and CEO of your portfolio, you get the fun job of picking who makes the cut.
So far this reporting season there are four companies that should definitely be considered for your All-Star dividend portfolio:
Telstra Corporation Ltd (ASX: TLS)
Telstra is a veteran All-Star dividend stock and retains its place with a standout performance in FY14. Telstra's Net Profit After Tax (NPAT) jumped 14.6% on 6.1% more revenue for the full year and the company again increased its dividend.
Shares in Telstra currently yield 5.3% (fully franked) and the company also announced a $1 billion off-market buy-back.
FlexiGroup Limited (ASX: FXL)
Consumer lending company FleixGroup also had a strong year growing cash NPAT 18% and shareholder earnings per share 12%. The strong result led to a 14% increase in dividends and the company currently yields a plump 4.4%.
The stability of FlexiGroup's business means it can already provide guidance around FY15 profit and is forecasting NPAT growth of up to 7%. It is this sustainable growth which makes Flexigroup one of my All-Star picks despite the slightly lower yield.
Insurance Australia Group Limited (ASX: IAG)
IAG currently offers a trailing dividend yield of over 6%, but this could be set to jump when the company reports its full year result on Tuesday, 19 August. The company has already revealed that it expects to report an insurance margin of between 18% and 18.3%, up from the 17.2% reported in FY13, and 11.5% in FY12.
IAG reports it has benefited from "relatively benign natural peril activity" in the second half of FY14 and combined with stronger financial markets the company looks strongly positioned.
Suncorp Group Ltd (ASX: SUN)
Suncorp Group is quickly rising in All-Star status after announcing a huge 49% increase to group NPAT for the full year FY14. Similar to IAG, the strong result came from improved margins and "favourable natural hazard and investment markets".
Suncorp aims to pay-out 60-80% of surplus capital and for FY14 this will come to a total pay-out of $1.05 per share; a dividend yield of 7% and a 40% increase over FY13.
