As an investor, you may be eyeing an issuer with a good history. This means the company is performing fantastically and is able to share the profits with its investors.
There is nothing wrong with finding out what companies are listed on the stock exchange and have the courage to pay high dividends.
Before we share a list of issuers with the High Yield Dividend Stocks, let’s first explore crucial fundamental terms.
What is a dividend?
The dividend is the distribution of a company’s profit to shareholders based on the shares owned by each investor.
Dividend distribution can reduce overall profit and cash on hand by the company, but dividing profits to investors is the main objective of a business.
This is one of the agendas of corporations whose shares are listed on the stock exchange. However, not all corporations distribute their share dividends.
Highest Dividend-Paying Stocks
Investors get a yield of 5.17 percent. For the dividend measure, this is a high number. Especially for the capital-intensive telecommunications sector.
This state-owned enterprise which also operates in the banking sector has a consistent performance that increases every year.
BMRI (Bank Mandiri Tbk.)
BMRI rarely distributes dividends of up to 60 percent of profit, so the yield obtained is around 6.09 percent. This is fundamentally a good thing. But it is advisable to buy when the price is cheap because it will be the same if the price is high.
After being acquired by MUFG, BDMN began to increase its dividends. BDMN distributes dividends of Rp187 per share, so the yield obtained is 6.75 percent.
The yield obtained was 7.19 percent.
HMSP is one of the corporations that consistently share their net income every year.
The performance of this issuer is quite competitive if we compare it to big banks like BBRI and BBCA.
BJTM always pays big dividends to its shareholders. The dividend yield received by investors was 8.73 percent.
It is no longer surprising to know that there are coal companies that are included in the list of issuers who give the highest Yield Dividend Stocks.
If the company is at a maturation level, it does not have an expansion plan, this will direct the profits the company gets to flow to shareholders.
Fundamentally, BJBR is a profitable and healthy corporation.
Derived from the coal industry, PTBA is a state-owned company under the Inalum corporation and is consistently able to pay high dividends.
ITMG often enters the list of corporations that are generous in distributing dividends to their investors. ITMG distributes dividends twice a year (year-end and after the financial statements are released).
High-Yield Dividend Stocks
- ITMG DPS (dividend per share: 2,745.0) (yield div: 23.07%) (rate div: 128.52%)
- SMAR (DPS: 750.0) (yield div: 18.80%) (rate div: 200.95%)
- PLIN (DPS: 588.0) (yield div: 18.04%) (rate div: 212.05%)
- ASJT (DPS: 20.9) (yield div: 16.04%)
- HEXA (DPS: 506.0) yield div: 14.58% (rate div: 95.87 percent)
- PTBA DPS: 339.6 (yield div: 12.53%)
- TPMA DPS: 26.6 (yield div: 11.88 percent)
- TOTL DPS: 40.0 (yield div: 9.62 percent)
- BISI (Bisi International) DPS: 100.0 (9.52 percent)
- LPGI DPS: 325.0 (yield div: 9.26 percent)
- MLPT (Multipolar Technology) DPS: 42.5 (YD: 9.16 percent)
- ADMF DPS: 908.8 (YD: 8.82 percent)
- BFIN DPS: 49.0 (YD: 8.60 percent)
- INDY DPS: 108.7 (YD: 8.52 percent)
- BYAN (Bayan Resources) DPS: 1,247.0 (YD: 8.02 percent)
- LPPF DPS: 333.0 (YD: 7.95 percent)
- MYOH (Samindo Resources) DPS: 102.9 (YD: 7.85 percent)
- DMAS DPS: 21.0 (YD: 7.84 percent)
- NRCA DPS: 30.0 (YD: 7.81 percent)
- ADRO (Adaro Energy) DPS: 120.0 (YD: 7.79 percent)
Also Read: What is the Investment Banking
Is it profitable to have dividends?
Will investing in a particular issuer bring you profit? Basically, the stock industry can offer you two benefits in the long run. The first is capital gains, the next is dividends.
For example, if you as an investor buy shares of issuer X at the price of 500 per share and one year later the share price rises to 750 per share, then it is said, your capital gain is 50 percent.
The 50 percent gain is only a potential capital gain if the shares are not actually sold. If it has been sold and gets a profit (return), then the stock will provide a realization capital gain (return) of 50 percent.
Another advantage of investing in stocks in the long term is getting stock dividends. As explained above, stock dividends are the distribution of profits from the company’s net income to its investors.
Dividend distribution is usually held at the end of each financial reporting year and has received approval from the GMS.
In order to receive dividends, the investor must hold the shares for a certain period of time until ownership of the shares is recognized as belonging to the investor and is entitled to receive dividends.
Later, the share dividend distributed by the issuer will be in the form of cash dividends or shares. Share dividends are given in the form of company shares which are distributed according to the portion of shares owned by each investor.
In general, the distribution of cash dividends is not much. The dividends received by investors are only about 1 to 3 percent of the share price. Even though it is small, the dividends received can be a regular income for investors, especially for investors who have a high number of shares.
If you expect dividends as a profit on investing in stocks, you should make a long-term investment so you can keep the stock until the company pays out the annual dividend.
Broadly speaking, issuers that dare to pay dividends are already established giant corporations (blue chips), so they don’t need funds for expansion. However, dividends received by investors must be deducted by income tax. The dividend tax is 10 percent of the value of the dividends received.
Our discussion is over regarding the High Yield Dividend Stocks. For those of you who want to invest in stocks, you can check the fundamentals of the related company first.
These few years have been quite difficult periods, therefore, not all issuers can maintain the same dividends from year to year. Hopefully useful and successful greetings to all of us!