Platinum Asset Management Limited (ASX: PTM) shares and Telstra Corporation Ltd (ASX: TLS) shares offer huge dividend yields.
TLS and PTM dividends
It should be noted, the dividend yields shown in the chart above are trailing. Meaning, the dividend yields are calculated using last year's dividend payments.
So while Telstra and Platinum's trailing dividend yields are much higher than the market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), both companies could cut their dividends in coming years.
Platinum, a funds management business, is expected to cut its yearly dividends from 32 cents to 26 cents, according to Morningstar data. That puts it on a dividend yield of 5.6% fully franked.
Telstra, the telecommunications behemoth, could come under pressure to cut its dividend if it cannot maintain its cash flow and profit as the NBN rolls out. The telco is expected to slightly trim its dividend over the next two years.
Foolish Takeaway
If you are seeking dividends, Platinum and Telstra should be on your watchlist. However, if you are a long term investor it's vital to remember that dividends are a by-product of the company's success. Indeed, you should be focusing on the business' growth prospects first and foremost, then the dividend. I recently wrote an article on Platinum here.
