Over the next month, there are 3 chances to secure ASX dividend payments above 6%. As the market picks up, high yielding dividend payments are harder to find. Moreover, all 3 of these companies have some potential to grow over the next 12 months, providing you with not only an above average dividend yield, but also a chance of share price growth.
An HR sector dividend share
The largest dividend opportunity over the next week is Ashley Services Group Ltd (ASX: ASH). The Ashley Services share goes ex-dividend on 1 September, which means you will have to buy it before that date. Ashley Services works in a range of areas in the HR field: provision of training through 3 sub brands, all of which are registered training organisations; recruitment for white collar positions via 2 separate brands; and labour hire services via 2 additional brands.
The company has not yet posted its full-year report, however its H1FY20 report delivered very strong results. This included an increase in H1 revenues by 23.8% versus the previous corresponding period (pcp). Along with an increase in net profit after tax (NPAT) of 26.8% pcp.
This ASX dividend share pays a 100% franked dividend of 2.7 cents per share. This is a yield of 7.11% on Monday's closing price. Ashley Services Group has a market capitalisation of $54.71 million.
A dividend share with a turnaround opportunity
AMP Limited (ASX: AMP) hit the headlines on Monday for all the wrong reasons. The embattled financial services company has been dealing with underwhelming performance as well as several high profile cases of alleged sexual harassment. Regardless, this company remains one of the nation's most prestigious wealth brands, despite a decade of poor returns. Moreover, if the right regime is installed, I believe the company can save its reputation and turnaround performance.
The AMP share price rose by 1.05% in Monday's trading. This was after news of the resignation of the chair, a director, and the demotion of the CEO of the AMP Capital subsidiary. Its share price is down by 24.7% in year-to-date trading. The company is unlikely to see the highs of 5 years ago anytime soon. Its recent H1FY20 report was abysmal, recording large falls in assets under management, as well as all revenue streams except banking.
AMP shares go ex-dividend on 18 September and will pay a 100% franked dividend of 10 cents per share. This will deliver a yield of 6.92% based on Monday's closing price. Buying in today requires faith in the new Chair Debra Hazelton to mend relationships and build an executive team that can turn the ship around.
A consulting industry dividend share
RXP Services Ltd (ASX: RXP) is an interesting IT services company I have been watching for a while now. It has a market capitalisation of $64.4 million and is starting to find its feet in the digital services area, which now makes up ~90% of its revenues. For a small company in the consulting field, it was able to generate $127 million over the year. While this was down by 10% due to coronavirus, it is still impressive for a small company.
In my analysis of this company I have found that it has a compound average growth rate for total sales of around 24.9% over a 9-year period. In addition, it has been able to grow its cash flow by approximately 51% per year on average, over the same period. This provides it with plenty of cash to grow the business.
It is currently selling at a price-to-earnings ratio (P/E) of 8, which is below its average 8 year P/E of 9.88. RXP Services goes ex-dividend on 17 September and is paying a 100% franked dividend of 2.5 cents. At Monday's closing price, this is a yield of 6.25%.
Foolish takeaway
These ASX dividend shares are all paying above 6% if you purchase at a price similar to Monday's close, and before the ex-dividend date. However, they are not without risk. The 2 smaller companies are likely to see a fall in share price after the ex-dividend date. Nevertheless, I feel that both of them are steadily growing and should see a level of share price growth over a 6–9 month period. Moreover, you may decide to keep them in your portfolio.
AMP on the other hand is a matter of personal choice. The company is severely ailing both in terms of culture and performance. I am sure that this is not fatal yet, and it could become a turnaround success story. But time is running out.
