Targeting a dividend yield above 10%? Try these shares on for size

Depending on what sort of investor you are, targeting either capital growth or high dividends might be your priority.

For those who are targeting high dividends, it pays to keep an eye out for the stocks and funds that are paying out well, but which can still be bought cheaply on a yield basis.

I’ve selected three that might fit the bill. Let’s have a look.

Ophir High Conviction Fund (ASX: OPH)

The Ophir High Conviction Fund only pays out a dividend once a year. The good news is it’s not too late to buy in.

The ex-dividend date for the upcoming 35.17-cent-per-share dividend is June 30, so you’d have to move relatively quickly to be able to take advantage of it.

Given the Ophir share price is currently $2.86, the shares are paying a dividend yield of 12.3%.

It must be said that the shares are currently down 13.9% over a 12-month period, and are trading at a discount to the fund’s net asset value of $3.18.

Ophir’s top five holdings are in A2 Milk Company Ltd (ASX: A2M), MAAS Group Holdings Ltd (ASX: MGH), Mineral Resources Ltd (ASX: MIN), ResMed Inc (ASX: RMD), and SuperLoop Ltd (ASX: SLC).

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria has announced a 50% boost to its full-year dividend payout as it moves to fend off a takeover bid from Diamond Infraco.

The toll roads operator previously had a dividend target of 40 cents per share, but on Monday morning, it said in a statement to the ASX that this target would be increased to 60 cents per share.

At the company’s current share price of $5.10, that equates to a full-year dividend yield of 11.8%.

The company said on Monday:

The Independent Directors now intend to target paying distributions to ALX Securityholders of at least 60.0 cents per ALX Security in the 12 months following the end of the Offer Period made up of ordinary distributions of 40.0 cents per ALX Security and additional distributions of at least 20.0 cents per ALX Security. These distributions are expected to be funded by a combination of distributions from Atlas Arteria’s portfolio cash flows, proceeds from potential asset sales and, where appropriate, utilising corporate borrowing proceeds.

WAM Capital Ltd (ASX: WAM)

This fund has paid out a 7.75-cent dividend twice a year like clockwork in recent times, giving it a dividend yield of 10.1%.

Part of well-known investor Geoff Wilson’s stable, the fund’s portfolio has returned an annualised 14.5% return since 1999, compared with 8.5% for the S&P/ASX All Ordinaries Index (ASX: XAO).

The fund said in a recent statement that one of its top performers had been network-as-a-service provider Megaport Ltd (ASX: MP1), while telco Tuas Ltd (ASX: TUA) was a drag on the portfolio.

The post Targeting a dividend yield above 10%? Try these shares on for size appeared first on The Motley Fool Australia.

More reading

• How does an 11.8% dividend yield sound?
• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Atlas Arteria urges shareholders to reject IFM’s $5.10 takeover bid
• Atlas Arteria: Takeover offer lifted to $5.10 per security
• This ASX 300 share is down 63% in 2026: Experts think it’s a buy!

Motley Fool contributor Cameron England has positions in Megaport and Ophir Asset Management Pty – Ophir High Conviction Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.