What better occasion than Halloween to be bewitched by some stocks which could be trading at levels so cheap and with yields so juicy that it's scary?
According to analyst consensus data provided by Morningstar the following four companies are all currently trading on financial year (FY) 2016 fully franked dividend yields over 5.5%. That's attractive when compared against the forecast average yield of 4.8% for the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) and certainly when compared against a term deposit!
- Woolworths Limited (ASX: WOW) – a crash in the share price of Australia's largest retailer to $24.14 today means the forecast dividend of 139 cents per share (cps) is now implying a fully franked dividend yield of 5.7%.
- Telstra Corporation Ltd (ASX: TLS) – a recent slump in the share price of Australia's leading telecommunications business which has seen the shares fall from a recent high of $6.50 to just $5.41 today means the forecast dividend of 31.5 cps is putting Telstra's stock on a forecast fully franked dividend yield of 5.8%.
- National Australia Bank Ltd (ASX: NAB) – the banking sector has lost some of its momentum in the past six months as investors have digested large capital raisings and readjusted their expectations to account for new regulatory capital requirements. NAB's shares are currently trading at $30.16 which is near their 52-week low. With a forecast dividend of 197.8 cps in the current financial year, this implies the stock is offering a fully franked dividend yield of 6.5%.
- Suncorp Group Ltd (ASX: SUN) – this banking and insurance giant is forecast to provide shareholders with a significantly higher dividend of 89.5 cps this year. With the share price having pulled back to $13.09 today, the forecast fully franked dividend yield is an attractive 6.8%.
Foolish takeaway
it's important to remember that yield should not be the only factor for buying shares in a company, but the four stocks above could be worthy of a closer look.
