For many investors in or approaching retirement dividends can make up a key component of returns. Below are three shares that may be a good fit for an income seeker's portfolio.
The Super Retail Group Ltd (ASX: SUL) dividend payout increased from 32 cents in 2012 to 46.5 cents in 2017. The dividend payout increase of nearly 50% over that period may look attractive to investors but the share price over the past five years has not done so well.
In early 2012 the retailer's share price was trading at around $7.50 and closed on Tuesday at $8.41. But, with a market cap of $1.66 billion and a dividend yield of 5.53%, the Super Retail Group may be worth a look. The company, with retail interests in Australia, New Zealand and China, reported a normalised net profit of $135.8 million for FY17, up 25% on the previous year. The Super Retail Group share price has been slowly picking up since its mid-year slump where it fell from $10.88 on March 15 to $7.27 on May 25.
The Westpac Banking Corporation (ASX: WBC) share price closed on Tuesday at $33.42, up a tad over 13% from the $29.55 price tag it was trading at on June 6. With a dividend yield of 5.67%, Westpac looks attractive from one point of view. But looming legal concerns centring on allegations that Westpac scammed life insurance customers may be a cause for concern. The class action launched against Westpac looks almost insignificant when compared to the Commonwealth Bank of Australia's (ASX: CBA) legal mess. But it still could cost Australia's oldest bank millions of dollars in addition to expensive lawyer fees and associated costs.
The Automotive Holdings Group Ltd (ASX: AHG) share price has been recovering after sinking to $3.18 on August 30 to close at $3.37 on Tuesday. Automotive Holdings offers a dividend of 5.64% but saw its net profit after tax drop by 38% to $55 million for FY17, likely prompting the August slump. But the group appears to be pressing ahead with its expansion strategy, which it hopes will turn things around. Managing director John McConnell announced earlier this month that the company has entered a deal to acquire five new dealerships.
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