Best yielders on the ASX

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Woof Woof! Who’s a good yielder! Photo: Mal Fairclough

They used to be called “dogs” but these days stocks with high yields are highly sought after. The dog strategy – think Dogs of the Dow and our own Down Under dogs, below – is based on the assumption that yields generally stay the same, whereas prices don’t: that is, if a dividend yield rises, it probably means the share price has fallen.

That might the case for some of our top 10 yielders for 2012, but it certainly isn’t for Telstra and the banks – NAB, Westpac, AMP and ANZ. Those five stocks had a very good year in terms of their share price value.

This list doesn’t include listed property trusts, which traditionally have high yields, but it does show that bank stocks are definitely a good bet when it comes to both yield and capital gains.

And despite ongoing fear surrounding the fiscal cliff, optimism about the Australian market continues.

ASX code	Company	Dividend yield	Latest price
ILU	Iluka Resources	8.3%	$9.02
QBE	QBE	7.9%	$10.90
NAB	National Australia Bank	7.2%	$25.00
LEI	Leighton Holdings	6.7%	$17.88
TLS	Telstra	6.4%	$4.37
WBC	Westpac	6.4%	$26.04
SYD	Sydney Airport	6.2%	$3.38
AMP	AMP Ltd	6.0%	$4.81
ANZ	ANZ Bank	5.8%	$25.05
ASX	ASX Ltd	5.7%	$31.21