If you're an Aussie investor eyeing retail stocks for dividends, JB Hi-Fi Ltd and Harvey Norman Holdings Ltd quickly spring to mind. Comparing JB Hi-Fi vs Harvey Norman shares can help you decide which might suit your portfolio if you're especially focused on dividend yield and income reliability.
JB Hi-Fi is a leading specialty retailer focused mainly on consumer electronics, electrical appliances and white goods across Australia and New Zealand.
JB Hi-Fi's payout record is impressive—not only has the yield stayed attractive, its dividends have been franked for years, regularly delivering both interim and final payments.
Harvey Norman is best known as the powerhouse franchisor behind over 270 Harvey Norman, Domayne and Joyce Mayne stores. Uniquely, Harvey Norman also owns a portfolio of properties that house many of its franchises, underpinning its balance sheet with hard assets.
While Harvey Norman's market capitalisation is smaller than JB Hi-Fi's, it more than makes up for it with higher yield and an extensive property portfolio, providing another layer of security for income-seeking investors.
Looking at recent momentum, both stocks have had a rocky year.
Harvey Norman fared even worse, down 38.4% year to date, with shares sitting at $4.21.
On the other hand, JB Hi-Fi has showed earnings power per share, a proven record of both ordinary and special dividends, and dwarfs Harvey Norman on a per-share dividend basis, even if its headline yield is lower due to a high share price.