In the simplest terms, a dividend is usually a payment from a share of profits, and it is made by a company to its shareholders. Some companies tend to make these payments regularly on an annual, quarterly or a monthly basis, while others pay dividends sometimes or not at all. This would depend on companies intending to inject the profits back into the business for growth. Few companies can allow you to reinvest dividends into new shares and investors can also benefit in the form of franking credits to receive tax benefits. Dividends are income paid and is one of the reasons why some people invest in shares to set a long-term steady flow of money for retirement. Few of the companies to look at while talking about dividend recommendations are discussed in this article. 

Australia and New Zealand Banking Group Limited (ASX: ANZ) trading at a market price of $28.89 as at market open on July 16, 2018, has an annual dividend yield of 5.5% which is fully franked. The most recent dividend paid out was of 80 cents with ex-dividend date of May 14, 2018 and dividend pay date of July 02, 2018. Compared with the first half of 2017, a solid result with statutory profit for the six months ending 31 March 2018, up 14% to $3.32 billion was noted. Cash Profit on a continuing basis is providing a better comparison of the ongoing businesses which was up 4% to $3.49 billion.

Broadly in line with the preferred payout range of 60-65% of cash profit, the latest payout ratio of the interim dividend with a tier one capital position above the Australian Prudential Regulation Authority’s (APRA) ‘unquestionably strong’ benchmark well ahead of the 2020 implementation was the key thing. Earnings per share grew 4% versus a year before whereas the return on equity on a continuing basis increased 32 basis points to 11.9%. Both the New Zealand and Australian markets continued to perform well with both the deposits and lending in the targeted segments growing strongly. This stock under dividend recommendations sets a zone that few banks could offer good profile despite the challenges that were seen owing to the Royal Commission that did play some role in recent sell off in the sector; however, ANZ has been a resilient one to be considered despite the sector-driven challenges.

Another stock which has been a decent one for