Companies with earnings that are consistently growing are usually the best dividend paying stocks to invest in if income is a prime objective. They will have more room to make increased dividend payments in the future.
Investors looking for the best dividend paying stocks on the Jamaica Stock Exchange should take the above factors into consideration. It is also a good factor to consider when buying stocks that are likely to increase in value over time.
On the Jamaica Stock Exchange, the Main Market, Carreras is the king of dividend payment with a yield of 11 percent based on the latest stock price of $8 in 2023, followed by Transjamaican Highway and at 7 percent, Scotia Group at 5 percent based on the last dividend paid of 40 cents and annualised, at a then stock price of $34. What is interesting about Scotia is the traditional metric is for the company to pay between 40 to 50 percent of profits.
Scotia historically pays just above 40 percent of profit, but that seems to have been interrupted as a result of the negative impact that flowed from the Covid 9 economic dislocation. 
The company reported earnings of $5.54 and that would suggest an annual dividend of $2.20 which would translate to a dividend yield of 6.7 percent with 2024 likely to be higher.
The Junior Market has two stocks with attractive yields Dolphin Cove and MailPac at 7 percent each. The payout for MailPac represent a full years’ profit.
Yields may have dipped in some cases but that does not change the longer term prospects.
Top 5 JSE dividend paying stocks now
January 26, 2024 by
