Searching for income in this low-rate environment? Here are three ASX-listed shares with dividend yields higher than 3%.
Coles Group Ltd (ASX: COL)
Coles is Australia’s second-largest retailer, only trailing Woolworths Group Ltd (ASX: WOW) on a revenue and profit basis. At the time of writing, Coles currently offers shareholders a 3.9% trailing 12-month dividend yield.
The Coles share price has fallen almost 15% after releasing its HY21 results. Compared to the prior comparable period, revenue increased 8.0% to $20.57 billion, earnings before interest and tax (EBIT) jumped 12.1% to $1.02 billion and net profit soared 14.5% to $560 million.
Management was pleased to advise the group is tracking well towards delivering cost savings of more than $250 million in FY21.
The strength of the result allowed Coles to lift its interim dividend by 10% to 33 cents per share. Coles shares recently went ex-dividend, with the group likely to pay its next round of dividends in September.
Harvey Norman Holdings Limited (ASX: HVN)
Well-known ASX retailer, Harvey Norman, delivered its half-year result in late February. In response to the result, the Harvey Norman share price has trended up around 4% since.
Compared to the prior comparable period, sales surged 25.8% to $5.12 billion and statutory net profit after tax (NPAT) leapt 116.3% to $462.03 million.
Management noted the group benefited from strong growth in computer, peripheral and gaming sales; along with the launch of the Sony PS5 and Xbox Series X consoles.
On the back of Harvey Norman’s result, the group declared a record interim dividend of 20 cents per share (fully franked) – the biggest interim dividend it’s ever paid.
Prospective shareholders may be enticed by Harvey Norman’s trailing dividend yield of 6.93%. The ex-dividend date for the interim dividend is set for 31 March, with the dividend to be paid on 3 May.
Atlas Arteria Group
Atlas Arteria is a global owner, operator and developer of four toll roads in France, Germany and the United States. At the time of writing, Atlas shares currently trade on a forward dividend yield of around 4.78% according to Morningstar estimates.
With a financial year ending 31 December, Atlas’s FY20 result was heavily impacted by movement restrictions stemming from COVID-19. This resulted in Atlas experiencing a 22.8% decrease in weighted average traffic across its toll roads and a 19.3% decrease in weighted average toll revenue. Net profit after tax (excluding notable items) dropped 61% compared to FY19 to $69.6million.
Atlas noted it has seen a moderate recovery in traffic, driven by the easing of lockdowns, notwithstanding the prevalence of work-from-home recommendations.
One reason to be positive on Atlas shares is that ‘insiders’ have recently been purchasing shares. According to Atlas’ ASX announcements, four company directors purchased shares on 5 March at prices between $5.55 and $5.92 per share.
Which one to buy?
Of the group, I would probably purchase shares of Coles. Harvey Norman has certainly reaped the rewards of work-from-home purchases, which are unlikely to be replicated in FY22. Atlas should benefit from increased traffic in Europe and the United States, but I am not sure if the recovery in traffic will be V-shaped.
On the other hand, Coles is a more defensive pick, which should continue to grow on the back of continued population growth and the rise of average grocery basket costs.
For more ASX dividend share ideas, check out this article: Here are 2 ASX shares I’d buy for dividends.
