ANZ Group Holdings Ltd has long been recognized for its appealing dividend yields. However, for those with a significant portion of their portfolio invested in ASX bank shares, exploring other dividend opportunities can offer valuable diversification. Here are some noteworthy ASX dividend stocks that could be worth considering.
ANZ Group Holdings Ltd (ASX: ANZ)
The banking sector is currently facing challenges, including intense competition among lenders and economic conditions marked by high interest rates. These factors are impacting net interest margins (NIM), which are crucial for profitability. Although ANZ maintains a relatively high dividend yield, forecasts suggest a potential decrease in the annual payout from $1.75 per share in FY23 to $1.66 per share in FY24.
For those seeking to diversify, there are other ASX-listed companies that offer attractive dividend potential.
Coles Group Ltd (ASX: COL)
Coles Group Ltd stands out as one of Australia's leading supermarket chains, providing essential goods to a growing population. The company’s expansion strategy includes opening new stores and enhancing sales at existing locations. Coles has also made strides in offering exclusive and convenience products, alongside focusing on sustainability.
Coles’ efforts have translated into strong financial performance. In the third quarter of FY24, supermarket sales revenue increased by 5.1% to $9.07 billion. E-commerce sales saw a remarkable boost, rising by 34.9% to $856 million, with online sales accounting for 9.3% of total revenue.
Since initiating dividend payments in 2019, Coles has consistently grown its annual dividend. Projections suggest the dividend per share could rise to 69.5 cents in FY25 and 78.5 cents in FY26, translating into forecasted grossed-up dividend yields of 5.5% and 6.2%, respectively.
Brickworks Limited (ASX: BKW)
Brickworks Limited is a major player in Australia’s building products industry, renowned for its brickmaking operations as well as its involvement in paving, roofing, masonry, cement, and timber. Brickworks also holds a substantial stake in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), a diversified investment company with interests across telecommunications, resources, property, and more. This investment contributes to capital growth and a rising dividend for Brickworks.
Additionally, Brickworks owns a notable portfolio of property assets, including a share in an industrial property trust. The development of advanced warehouses on former Brickworks land is enhancing property value and generating rental income.
Brickworks has a long track record of dividend payments, having increased its annual dividend per share every year since 2014. With a trailing grossed-up dividend yield of 3.3%, the yield may become more attractive in the future if the company continues its trend of increasing dividends.
For investors looking to diversify their dividend investments beyond ANZ Group Holdings Ltd (ASX: ANZ), companies like Coles Group Ltd (ASX: COL) and Brickworks Limited (ASX: BKW) offer promising options. Each of these stocks provides a solid dividend history and potential for future growth, making them worthy considerations for a well-rounded dividend portfolio.