Finding ASX-listed dividend stocks is certainly harder these days.
Many companies are facing major macroeconomic headwinds as jobs dry up and business conditions falter.
With that said, here’s a look at three ASX dividend stocks that could be worth consideration.
Option #1: Bet on more betting
The first dividend stock I’ve got for you is Tabcorp Holdings Ltd [ASX:TAH].
You can see a muted bounce off the March market lows for the TAH share price:
While young upstarts like Pointsbet Holdings Ltd [ASX:PBH] make inroads into the US, the TAH share price is stuck in a holding pattern.
The shuttering of many brick-and-mortar TAB venues is certainly hurting, but they may be able to bounce back and return to paying a dividend.
This year as per their FY20 results presentation, group revenue was down 4.8% and EBITDA down 11.5% versus the prior corresponding period.
Not the best, and they had to give up their final dividend because of this.
But they are quickly pivoting to digital initiatives and the strategy could pay off.
They tapped the market for an additional $600 million to pay off debts, and also stated that month that they would operate on a dividend payout ratio of 70 to 80%.
If they bounce back and return a decent NPAT, they could be attractive as a buy and hold for a few years, despite increasing competition.
Option #2: Under-appreciated grocery chain
With a market cap of just over $3 billion, people often forget about Metcash Ltd [ASX:MTS].
With a current dividend yield of 4.11%, the company has a really low price to sales ratio of around .2.
Meaning significant revenue to be found — $13 billion in fact.
Grocery stores are hardly going away anytime, and their hardware business should do well as people do more DIY house fixups.
The MTS share price bounced around a lot this year, as you can see below:
MTS could be a surprise package as a dividend stock when their next results are released.
Option #3: Telecommunications giant that could improve
Everyone’s familiar with Telstra Corporation Ltd [ASX:TLS].
The TLS share price is potentially halting its slide now, and Telstra now has a dividend yield of 3.52%:
They still paid their final dividend in August, and although it wasn’t everything that investors hoped for, it wasn’t bad given the delay in executing the T22 plan.
They have a big 5G push in the works, and connectivity is still a priority going forward.
Telstra may surprise in the long run.
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