Dividend stocks have been ruling the headlines for quite some time now. With inflation not going away any time soon, analysts believe these stocks will stay on investors’ radars for the next few years.
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Now, with the TipRanks Dividend Calculator tool, choosing the right dividend stock has become easy. This tool helps the investor calculate future dividend income based on expected yield, share price increase, reinvestment plan, and many other factors. The highlight of this tool is that you can make changes to any of these parameters and compare the dividend income of different stocks.
Let’s see two Australian companies with good dividend yields and calculate their projected payment using this tool.
Macquarie Group Limited (AU:MQG)
Macquarie Group is a financial company that provides banking, asset management, and advisory services globally.
The company’s stock has suffered from global economic headwinds, rising inflation, and tighter monetary policies. It has fallen by 18% in the last year. Despite this, the company’s financial performance stays strong, and the outlook is stable. This makes the dividend story more believable. Analysts believe that the company’s portfolio of businesses is profitable and quite adaptable in uncertain times.
The company has a good track record of at least 10 years of dividend payments. The interim dividend for 2022 was AU$3.00 per share, up by 10% from AU$2.72 in 2021.
Moving on to the dividend calculator, let’s see the dividend income from this stock after 10 years. If we buy 100 shares of Macquarie at the current price of AU$170 and opt for the dividend reinvestment plan, the total dividend income after 10 years will be AU$10,531.8.
Here, we have assumed an annual dividend increase of just 1% and a share price increase of 3%.
Is MQG a Good Buy Now?
According to TipRanks, Macquarie stock has a Moderate Buy rating based on nine analysts’ recommendations. It includes six Buy and three Hold ratings.
The target price of AU$193.0 is 13.6% higher than the current price level.
Woodside Energy Group (AU:WDS)
Based in Australia, Woodside Energy is an oil and gas exploration company.
Contrary to Macquarie, Woodside’s stock has been on an upward trajectory in the last year, with 72% growth. This is a combined effect of rising energy prices and the company’s merger with BHP’s oil and gas business.
The company has raised its full-year output forecast, riding high on its production and revenue growth in the last few quarters. As a result, the company’s interim dividend also increased by almost three times to $1.09 per share in 2022.
The company has a dividend yield of 8.7%, which is one of the highest in Australia. Using the dividend calculator, if we invest in 100 shares of Woodside, the total dividend payment after 10 years will be AU$5,926.3. The other parameters remain the same as above for calculation purposes.
Is Woodside Energy a Good Stock?
According to TipRanks’ analyst consensus, Woodside stock has a Moderate Buy rating, based on six Buy and seven Hold recommendations.
The target price is AU$37.6, with a high forecast of AU$43.0 and a low forecast of AU$33.7. The target price has an upside of 8.6% on the current price level.
Concluding Thoughts
The dividend calculator is a perfect way to assess the correct value of dividend payments, adjusting the parameters as per an individual’s choice. With this tool, it becomes easy to compare the dividend stocks on a variety of other dimensions, rather than just comparing the yields.
