The ASX Top 20 is comprised of the largest 20 Australian publicly listed companies by market capitalization. The following table lists these companies with their tickers on the U.S. markets and the current dividend yields:
|S.No.||Company||Ticker||Market Capitalization as of March 6, 2013 (in A $s)||Dividend Yield as of March 5, 2013||Sector|
|1||RIO TINTO LIMITED||(RIO)||$358,707,607||3.57%||Materials|
|2||BHP BILLITON LIMITED||(BP)||$287,153,366||3.07%||Materials|
|3||COMMONWEALTH BANK OF AUSTRALIA.||(CMWAY.PK)||$277,839,804||7.26%||Banking|
|4||WESTPAC BANKING CORPORATION||(WBK)||$242,871,846||5.30%||Banking|
|5||NATIONAL AUSTRALIA BANK LIMITED||(NABZY.PK)||$237,245,326||6.05%||Banking|
|6||AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED||(ANZBY.PK)||$179,818,344||5.16%||Banking|
|7||WESTFIELD RETAIL TRUST||(WTSRF.PK)||$161,986,724||6.07%||Real Estate|
|8||TELSTRA CORPORATION LIMITED.||(TLSYY.PK)||$137,753,923||6.30%||Telecom|
|9||WOODSIDE PETROLEUM LIMITED||(WOPEY.PK)||$132,143,008||4.85%||Energy|
|10||WESFARMERS LIMITED||(WFAFY.PK)||$120,476,736||4.25%||Food and Consumer Staples retail|
|11||FORTESCUE METALS GROUP LTD||(FSUGY.OB)||$114,421,357||1.85%||Materials|
|12||WOOLWORTHS LIMITED||(WOLZY.OB)||$103,445,038||0.00%||Food and Consumer Staples retail|
|13||NEWCREST MINING LIMITED||(NCMGY.PK)||$97,304,201||1.57%||Materials|
|14||CSL LIMITED||(CMXHY.PK)||$89,275,653||1.60%||Pharma and Biotech|
|16||QBE INSURANCE GROUP LIMITED||(QBIEY.PK)||$67,525,699||3.63%||Insurance|
|17||ORIGIN ENERGY LIMITED||(OGFGY.PK)||$66,500,998||4.05%||Energy|
|18||BRAMBLES LIMITED||(BMBLY.PK)||$63,791,119||3.07%||Professional Services|
|19||WESTFIELD GROUP||(WFGPY.PK)||$59,961,187||4.50%||Real Estate|
|20||OIL SEARCH LIMITED||(OISHY.PK)||$57,041,477||0.51%||Energy|
Since Australia is a resources-based economy, the top two highly valued companies are in the materials sector. Four banks are the next most valued companies. This is not surprising since banks act as the financial pillar of the Australian economy, providing financing to companies and consumers alike. Since the real estate sector has held up well in the past few years, Aussie banks have not been adversely impacted like their peers in Europe and in the U.S. Australian banks also have high exposure to the fast growing markets in Asia. For example, ANZ Banking Group (ANZBY.PK) was recently named as one of the top four corporate banks in Asia.
From an investment standpoint, the four banks noted and Telstra (TLSYY.PK) look attractive at current or lower levels for long-term investment. Investors willing to add commodity stocks, which can be highly volatile, can consider the resource companies shown in the table above.
Note: Dividend yields noted are as of March 5, 2013.
Disclosure: No positions.