6 stocks with sustainably high dividends (and 2 on the way south)

According to S&P Dow Jones Indices research, the S&P/ASX 300 has a trailing 12-month dividend yield of 4.5%. This far surpasses the dividend yield of our developed market peers, with the UK boasting a 3.7% yield and the US just 1.7%.

Last year, total dividends paid out to investors totalled a record $113 billion. S&P Dow Jones analysts found that our market's dividend pool has grown at a compound annual growth rate (CAGR) of 6.5% over the past 10 years - far higher than the RBA's inflation target of 2%.

In fact, 148 companies increased their dividends in 2022, despite the S&P/ASX 300 falling quite deeply into the red. In total, 216 companies paid out dividends last year.

As it currently stands, there are 32 stocks within the S&P/ASX 300 with trailing yields higher than the long-term average market return of 8%. Without stating the obvious, this is far higher than the Australian market's average of 4.5%.

As the saying goes, when something looks too good to be true, it usually is.

So in this episode, Livewire's James Marlay was joined by Antares Equities' Andrew Hamilton and Plato Investment Management's Peter Gardner for their analysis of the equity income spectrum, as well as the stocks they believe can continue to pay out sustainably high dividends from here.

Plus, because we all know this anonymous writer loves a dash of drama, we asked Peter and Andrew to each name one double-digit yielder likely to face dividend-paying challenges from here.

Note: This interview was filmed on Wednesday 3 May 2023. You can read an edited transcript below.

[kriscatton]

6 high yield stocks, but you only mention 2?

[neilstleon]

Thanks for another great show. I also like the big 4 banks for the reasons mentioned. But given the possibility of a substantial recession occurring, global banking fears and a possible looming mortgage cliff I wonder if it would be better to wait for a much lower price to buy the banks?