Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

3 ASX Dividend Shares That Aren’t Banks

You don't need to buy the banks or speculative small-caps to get a big dividend yield. Here's why I think it's worth looking at shares of Coca-Cola Amatil Ltd (ASX: CCL), Sydney Airport Holdings Pty Ltd (ASX: SYD) and IOOF Holdings Limited (ASX: IFL).

You don’t need to buy the banks or speculative small-caps to get a big dividend yield. Here’s why I think it’s worth looking at shares of Coca-Cola Amatil Ltd (ASX: CCL), Sydney Airport Holdings Pty Ltd (ASX: SYD) and IOOF Holdings Limited (ASX: IFL).

Are ASX Income Shares Worth The Risk?

One of the best things about investing in the Australian share market is the ability to generate long-term dividend income. Sometimes, these companies pay their dividends half-yearly or every six months (known as the interim and final dividends), or just one per year.

What makes Australian dividends so special is that Aussie companies often pay dividends with something called ‘franking credits’. Franking credits are like tax credits stored at the tax office (ATO) until you file your tax returns and claim them. The following Rask Finance video explains franking credits in more detail.

While these three companies don’t have the highest dividend yields, I’d much rather sacrifice one or two percent to get something stable. Here are three ideas…

1. Coca-Cola Amatil Ltd

Coca-Cola Amatil is the Australian distributor and rights holder to the famous Coca-Cola brand (which is owned by the US parent Coca-Cola Company). Coca-Cola Amatil started life in 1904 as British Tobacco Company. The ‘Amatil’ in its name came in 1977 when it was renamed as Allied Manufacturing and Trade Industries Limited (AMATIL).

Coca-Cola Amatil has had a great run this year, up 35% since January. The recent half-year FY19 results showed revenue growth of 5.2% and statutory net profit after tax (NPAT) growth of 6.3%.

Coca-Cola Amatil has consistently grown its dividends for several years now and currently offers a trailing dividend yield of 4.23% unfranked. That might sound lower than you were expecting, but pair that with capital growth and you could have yourself a nice total return.

2. Sydney Airport Holdings

Sydney Airport Holdings is the company that operates the Kingsford Smith Airport, it currently has a 99-year lease on the airport but it will revert back to government ownership at the end of this century. According to Sydney Airport, it generates $30.8 billion in economic activity a year, which is equivalent to 6.4% of the NSW economy.

Syndey Aiport shares have been falling over the last month on news of lower traffic which is certainly something that investors should watch closely. With a second airport set to open in Sydney by 2026, low traffic numbers may become a recurring issue.

However, for the last few years, Sydney Airport has been quickly raising its dividend and its share price, and the current trailing dividend yield is 4.76% unfranked.

3. IOOF Holdings Limited

IOOF Holdings is a diversified financial business that offers a variety of services to clients including financial advice, platform management & administration, investment management, and trustee services. IOOF has been operating since 1846 and is now one of the largest financial services industry businesses.

IOOF shares are up more than 13% year-to-date but it hasn’t been a clear run. IOOF’s FY19 profit was impacted by remediation costs following the Royal Commission, but funds under management, administration and advice (FUMA) increased by 18.7% which is a positive sign. IOOF did have to cut its dividend but it still maintains a fully-franked trailing dividend yield of 6.66%.

Buy, Hold Or Sell?

I’m not suggesting these companies are necessarily worth buying today but they could be ones to consider for a long-term investment. Sydney Airport arguably faces the largest headwinds, while IOOF could see a return to strong performance with the worst of the Royal Commission over if it can avoid cutting dividends again.

For three other dividend ideas, check out the free report below.

[ls_content_block id=”14945″ para=”paragraphs”]
Disclosure: At the time of publishing, Max does not have a financial interest in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content