Even in times of economic uncertainty, Australia’s economy has remained resilient given its prime location in close proximity to Asia, as well as its abundant wealth of mineral resources.
Dividend stocks reward investors with regular payouts, allowing them to share in company revenues. Although they tend to offer stability, as with most investments, dividend stocks are not without risk.
Investors can mitigate risk by choosing long-term dividend stocks called “dividend aristocrats,” which often offer the best value. Their reputation for delivering healthy returns and consistent dividend payments gives them a safer investment profile over the rest of the dividend stocks on the market. Companies that can consistently pay out dividends to shareholders are often the same companies that continue pumping out profits, even with increasing market volatility.
Here the Investing News Network offers investors a list of the five top ASX dividend stocks on Stake’s list based on dividend yield. Investors consider dividend yield a key metric for appraising a stock’s value. The ASX stocks on the list below have strong dividend yields of greater than 7 percent, with data current as of May 2, 2024.
Market cap: AU$6.91 billion; dividend yield: 13.26 percent
Yancoal pays out dividends to shareholders twice a year, with a total of AU$918 million in dividend payments for 2023. The company’s latest dividend was paid on April 30, 2024, at AU$0.32 per share.
Market cap: AU$3.93 billion; dividend yield: 10.97 percent
ASX-listed dividend stock New Hope is involved in all stages of the coal industry, from exploration and development to production and processing. The company owns interests in two open-cut coal mines in Queensland and New South Wales, and is also involved in the agriculture and oil and gas sectors.
Russia’s war in Ukraine has pushed many European nations to turn the dial up on coal usage to meet rising energy needs. This has translated into greater revenues for New Hope as coal prices rise.
New Hope paid out a dividend of AU$0.17 per share on April 30, 2024.
Market cap: AU$79.12 billion; dividend yield: 8.09 percent
Western Australia’s Fortescue is one of the world’s biggest iron ore producers. The mining giant has multiple operations in the Pilbara region and its products are sold globally, but mainly to China.
Chairman Andrew Forrest has committed the company to reaching zero carbon emissions by 2030. As part of this green initiative, in early 2022 the company bought Williams Advanced Engineering and announced the world’s first zero-emissions infinity train, which will be able to use electric power to bring ore to port.
Fortescue’s dividend payments are made to shareholders twice a year. Its most recent dividend was paid out on March 27, 2024, at AU$1.08 per share.
Market cap: AU$1.15 billion; dividend yield: 7.42 percent
Helia’s shareholders enjoyed a AU$0.45 per share dividend payout on March 22, 2024.
Market cap: AU$57.91 billion; dividend yield: 7.08 percent
Woodside Energy Group is focused on oil and gas, as well as what it calls new energy. Its operating assets are located in Australia and internationally, including the Gulf of Mexico and Senegal, as well as Trinidad and Tobago.
Woodside Energy issues dividends with its full-year and half-year results. Its latest payout to shareholders came in at US$0.60 (about AU$0.92) per share on April 4, 2024.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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