Three ASX Dividend Stocks Worth a Look in This Market

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:

ASX TAH Share Price Chart - Tab Corp ASX


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:

ASX MTS Share Price Chart - Metcash ASX


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%:

ASX TLS Share Price Chart - Telstra Shares


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.


Lachlann Tierney,
For The Rum Rebellion

PS: We will reveal our top five ASX-listed dividend stocks with a great chance of maintaining big payouts during and after the crash. Click here to download your free report.

Lachlann Tierney is a writer for The Rum Rebellion and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. 

The Rum Rebellion