Many investors are lured to the ASX by the prospect of healthy dividends.
Here are three companies offering good dividends that will appeal to some investors looking for a relatively stable income stream.
Automotive Holdings Group Ltd (ASX: AHG)
Automotive Holdings expects to pay shareholders a fully franked dividend of 19 cents per share for financial year (FY) 2018.
That figure represents a yield of about 5.67% based on the $3.35 share price close on Tuesday.
But it's down on the 22.5 cents the group paid shareholders in FY 2017, reflecting the company's share price which has shed about 15% in the past year.
As such, the automotive retailing company, with more than 110 dealerships across Australia and New Zealand, may offer investors a chance of reaping rewards beyond the dividend pay-out.
G8 Education Ltd (ASX: GEM)
G8 Education Ltd has been gradually increasing its dividend since 2010.
In FY 2017 it paid shareholders dividends of 24 cents per share, fully franked, equating to a yield of about 5.34% based on the company's share price of $4.49 at Tuesday's close.
But it seems G8 Education's long-running annual dividend increase is coming to an end.
G8 Education intends to pay shareholders a dividend of 20 cents per share starting next year which would amount to about 4.45% of the share price recorded above.
G8 Education, which provides educational child care services, announced the reduction in the dividend payments would help management achieve its desire to grow revenue and earnings per share.
The company also stated it will transition to a proportionate dividend policy in 2018 under which G8 intends to pay out between 70% and 80% of underlying NPAT in dividends.
Westpac Banking Corp (ASX: WBC)
Westpac is another company with a strong dividend history and has been increasing dividends paid to shareholders since 2010.
The bank expects to pay shareholders a fully franked dividend of $1.88 per share for FY 2018, the same amount per share the bank paid out in 2017.
That payment would provide shareholders with a dividend return of around 5.67% based on a share price of $32.64.
But, despite the healthy dividend offered by the bank, I wouldn't be keen on investing in Westpac with a range of better options located outside the banking sector.
