If you're looking to escape low interest rates in 2015, here are five dividend stock ideas to add to your watchlist…
- Insurance Australia Group Ltd (ASX: IAG) is the name behind brands such as CGU, SGIO, NRMA and more. Not only does IAG boast extremely profitable operations in local markets, it is also expanding into Asia through joint venture partnerships. It is expected to yield a dividend of 5.8% in the next year (8.4% grossed-up).
- National Australia Bank Ltd. (ASX: NAB) is Australia's biggest bank by assets. Despite its troublesome foreign exposure, NAB has achieved a decent average annual total shareholder return of 8.8% over the past decade. Given its relative underperformance NAB trades on the lowest valuation multiple of the big banks and has a dividend yield of 5.6% fully franked (7.9% grossed-up). Even so, it's no bargain and investors would be wise to keep it on their watchlists for now.
- Woolworths Limited (ASX: WOW) needs no introduction given its huge store presence throughout the country and ownership of key retail brands such as Big W, Masters Home Improvement, Dan Murphy's and more. Despite its dividend and dominance across key product lines, Woolworths shares aren't lacking growth potential. In fact recent share price falls have provided upside in the short-term, whilst its ongoing push into financial services provides long-term potential.
- Telstra Corporation Ltd (ASX: TLS) is a favourite Australian dividend stock. Its enviable free cash flows and dominant position in the domestic technology and telecommunications market enable it to pay huge dividends, whilst also investing in new growth areas. It is forecast to pay a 4.5% fully franked dividend (6.4% grossed-up).
- Coca-Cola Amatil Ltd (ASX: CCL) is Australia's, Indonesia's and four neighbouring countries' bottler and distributor of Coca-Cola branded products. It is also the exclusive distributor of Beam alcoholic beverages. With its share price taking a beating over the past year and an operational review now complete (which included a large investment from parent, The Coca-Cola Company) it presents as a compelling buy to hold opportunity.
Buy, Hold, or Sell?
Despite each company offering big dividend yields, only Coca-Cola Amatil appears to be compelling value today whilst the other four are too expensive to justify an investment today.
However if you're looking for a great dividend stock idea right now, our top analyst, Scott Phillips, recently identified one top technology stock which is great buy today!
