Buying stocks with a strong dividend yield is a good strategy for some investors, but you want to be confident that they're going to be around for the long haul.
I've had a look through recent broker reports and selected three major Australian companies that are paying a dividend yield of at least 5% and are forecast to do so in the coming years.
Let's have a look at the companies that made the grade.
Amcor Plc (ASX: AMC)
Broker Morgans has this week issued a new research report on Amcor, tipping the company's shares will increase to $65.40 over the next 12 months, up from $57.99 currently.
The Morgans team said since Amcor's merger with Berry in April 2025, it had identified a range of non-core businesses, which are expected to be sold off over time.
Morgans has estimated, conservatively, that these businesses are worth about US$1.8 billion, and to date, Amcor has sold off six businesses for about US$500 million.
On the business more broadly, Morgans said Amcor is a "highly defensive" business with a leading market position and an experienced management team.
They added:
We expect the combination with Berry, along with potential divestments of non-core, lower-quality assets, to enhance AMC's growth outlook and strengthen its balance sheet over the medium term. While execution of synergy targets will be key, AMC has a strong track record of integrating large scale transactions.
Morgans has forecast Amcor will pay a dividend yield of 6.3% this year, rising to 6.6% by FY28.
Regal Partners Ltd (ASX: RPL)
As well as forecasting a strong dividend yield, Bell Potter has a bullish share price target of $4.70 for Regal Partners, compared to its current price of $2.92.
Regal Partners is an alternative investment manager with eight primary brands, the broker said.
Bell Potter said:
The Group controls $21bn in funds under management. We see further growth, driven by positive net inflows, investment performance, acquisitions and exposure to secular asset classes. This is supported by an aspirational blueprint to double offshore client capital. Successful execution, in our view, provides a pathway to teens growth over the medium term, enhanced through operating leverage.
As well as having the potential for strong capital returns, Bell Potter said Regal Partners was expected to pay a dividend yield of 6.2% this year, with that increasing to 7.6% by 2028.
Metcash Ltd (ASX: MTS)
This grocery company reported its FY26 results this week, which came in line with guidance.
The team at Macquarie said the update on the first seven weeks of the company's current trading year was mixed, with food below consensus but hardware ahead.
Macquarie maintained its neutral rating on the stock, with a price target of $3.20 compared to $3.01 currently.
The Macquarie team said:
Management is executing well against its strategic priorities. However, broader conditions suggest a mixed outlook. In particular, supplier inflation implies difficulty in maintaining the "IGA Price Gap" and conditions likely to weaken in Hardware due to lower housing turnover.
The company's dividend yield for 2026 was 5.8%, and this was expected to dip to 5.4% next year, then rise to 5.9% by FY 2029.
The post 3 companies to own for a dividend yield above 5% appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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