\n\tBy Greg Peel<\/p>\n
\n\tThere is no smoke and mirrors involved nor anything dodgy. The simple fact of the matter is that if you buy a stock (that pays two dividends per year) just before it goes ex-dividend and hold that stock for thirteen months you will then receive a total of three dividends. Three dividends over thirteen months provides for a much better yield than two over twelve. And if you ask which are the most popular yield stocks in the market right now, right up there are the Big Four banks.<\/p>\n
\n\tOf the four, three are about to go ex-div. Commonwealth Bank ((CBA<\/span>)) is on a different cycle but ANZ<\/span> Bank ((ANZ<\/span>)) goes ex-div on May 9, Westpac ((WBC)) on May 13 and National Bank ((NAB)) on May 30.<\/p>\n \n\tRBS<\/span> Morgans<\/span> is forecasting a 2.3% increase in ANZ’s<\/span> interim over last interim, to 68cps<\/span>. The analysts’ forecast for the total of all next three dividends is $2.19ps, or a 7.6% cash yield. That’s a 7.0% per annum yield over thirteen months compared to the twelve month yield of 5.2%*.<\/p>\n \n\tRBS<\/span> is expecting a 2.4% increase in Westpac’s dividend to 84cps<\/span>, and a total for three divs<\/span> of $2.65. That’s an 8.4% yield over thirteen months or 7.8%pa, compared to a twelve month yield of 5.5%.<\/p>\n \n\tThe NAB increase is expected to be 2.2% for 90c<\/span> and a total of $2.79. That’s 8.8% over thirteen months or 8.1%pa compared to 5.9%.<\/p>\n \n\tOn a net of all three banks, that’s an 8.3% yield over thirteen months, or 7.7%pa against 5.5%.<\/p>\n \n\tThese are cash dividends. Then one has to add the gross-up yield benefit of full franking, which differs depending on one’s tax situation.<\/p>\n