ASX shares have been out with big earnings reports today and some even bigger dividends.
Here are 11 that caught my eye and are worth a spot on your watchlist for dividend income.
Anchor your portfolio with these top 20 dividend growth ASX shares
1. Wesfarmers Ltd (ASX: WES)
The pandemic wreaked havoc on Bunnings-owner Wesfarmers.
The company lost 34,000 trading days or 20% of its total opening hours during the half. This includes over 20,000 store days where stores were completely closed.
Notwithstanding the difficult operating environment, Wesfarmers declared an 80 cents per share dividend bringing its dividend yield to 3.3%.
2. Telstra Corporation Ltd (ASX: TLS)
Similar to Wesfarmers, Telstra’s accounting revenue and profit fell in its FY22 first-half result.
Positively, the underlying business recorded growth particularly in its mobile operations, which increased earnings by 25%.
Telstra declared an 8 cent per share dividend for the seventh consecutive half.
It now trades on a fully franked dividend yield of 4.1%.
3. South32 Ltd (ASX: S32)
The mining and minerals business profit soared 7-fold in one half as commodity prices went bananas across the globe.
Subsequently, its dividend increased five-times to 12.1 cents per share.
South32 now trades on a very attractive 4.3% dividend yield with further growth expected across its current and future projects.
4. Iress Ltd (ASX: IRE)
The backend data provider for financial intermediaries declared a 30 cent per share interim dividend for the fourth year running.
Iress achieved a 3% rise in revenue and a 14% increase in profit, continuing its turnaround plan to grow the double the business by 2025.
“We executed major client projects in multiple markets and began to move to a more efficient, single product and technology platform which will underpin our future growth and improved returns”
“The 2025 growth targets of delivering more than twice NPAT with potential upside are reaffirmed”
5. Cleanaway Waste Management Ltd (ASX: CWY)
There’s nothing rubbish about the Cleanaway first-half result, with revenue, EBITDA and dividends all growing.
Like many ASX shares, the business was hit with rising costs including shipping and fuel but still managed 2.45 cents per share dividend.
This puts the Cleanaway share price on a dividend yield of approximately 1.6%.
6. Challenger Ltd (ASX: CGF)
Annuities and retirement products Challenger surprised the market with a 20% increase in assets under management.
Life sales were up 44% and its newly acquired banking operations are integrating well.
As a result, an interim dividend of 11.5 cents per share was announced bringing its dividend yield to 3.3%.
“As the clear leader in retirement incomes, and one of the fastest growing active funds managers in the country, complemented by the strategic acquisition of our new digital bank, Challenger has a unique opportunity to meet the needs of more Australians entering and in retirement”
7. Transurban Group (ASX:TCL)
Toll-road operator Transurban retained its 15 cents per share distribution despite traffic falling 4.8% during the half.
COVID-19 restrictions on mobility have plagued the business for the past two years.
However, management indicated the end may be on the horizon with traffic activity picking up in its North American operations.
Transurban currently has a distribution yield of 2.3%.
8. Origin Energy Ltd (ASX: ORG)
ASX shares have been put on notice by investors for its impact on the planet.
This likely factored into Origin’s decision to close Australia’s largest power station by 2025 signalling its intention to “be a leader in Australia’s energy transition to net-zero emissions”.
Another positive for shareholders was the 12.5 cents per share unfranked dividend.
Origin is now trading on a dividend yield of 3.4%.
9. Goodman Group (ASX: GMG)
Industrial real estate developer Goodman Group announced a 28% increase in operating profit for the first half of FY22.
Subsequently, the business has upgraded its FY22 guidance to 20% earnings growth, up from the 15% growth announced just three months ago.
Goodman has a distribution yield of just 1.2%, but the REIT invests most of its profits back into building its property portfolio:
“Forecast distribution for FY22 remains at 30.0 cents per security given the attractive opportunity to deploy retained earnings into the Group’s development and investment inventory…”
10. Beacon Lighting Group Ltd (ASX: BLX)
Beacon lighting announced a record first half result with sales of $151 million, EBITDA of $49 million and profit of $22 million.
Three new stores were opened, while the business achieved huge growth in its online and international divisions.
Subsequently, Beacon declared a 4.3 cents per share dividend bringing its dividend yield to an attractive 3.4%.
11. Domain Holdings Australia Ltd (ASX: DHG)
The number two Australian property portal achieved a 34% profit jump in the first half as housing prices soared.
Domain declared a fully franked 2.0 cents per share dividend, inferring a dividend yield of 1.3%.
