Most conservative investors prefer consistent dividends because they refrain from investing in high-risk companies. Equity investments are risky and highly volatile, which is why many conservative investors prefer to invest in less risky, consistent, high-ASX dividend-paying stocks. To identify the top dividend-paying stocks in Australia, investors should examine factors that signal long-term income potential. Investors generally overhaul companies with consistent dividend growth, reflecting management’s confidence and commitment to shareholders. Let's keep an eye on some of the most promising ASX high-yield dividend-paying stocks, which are as follows:
Note: Market cap and share price are mentioned below as of 1 December 2023.
#1. Yancoal Australia Limited (ASX: YAL)
Market capitalization: $6.55 billion. (01, Dec 2023)
Sector: Energy.
Current market price: $4.96.
Yancoal Australia Limited (ASX: YAL) is the largest coal-focused company in the ASX and a producer concentrating on developing and operating coal projects in Australia. The company has an annual dividend yield of 21.92% as of 1 Dec 2023.
In 2023, total Australian saleable thermal coal production will be approximately 251 million metric tons. The company’s equity-attributable thermal coal production is about 13% of the national total.
According to the International Energy Agency, global coal demand reached an all-time high, exceeding 8.3 billion tonnes.
Zimplats Holdings Limited (ASX: ZIM)
Market capitalization: $2.24 billion. (01, Dec 2023)
Sector: Basic Materials
Current market price: $20.81.
Zimplats Holdings Limited (ASX: ZIM) is a leading mining company focused on the exploration, development, and production of platinum group metals in Zimbabwe. The company has an annual dividend yield of 13.43% as of 1 December 2023.
During FY2023, the company invested US$304.3 million in capital projects, an increase of 13% from US$270.3 million in FY2022. The company, with its PE (TTM) of 7.36x and ROE of approximately 11%, offers an attractive valuation for the shareholders.
Woodside Energy Group Limited (ASX: WDS),
Market capitalization: $58.56 billion. (01, Dec 2023)
Sector: Energy.
Current market price: $30.84.
Woodside Energy Group Limited (ASX: WDS), a top Australian energy company, focuses on hydrocarbon resource exploration and development. As a major regional independent oil and gas player, the company has experienced strong dividend growth, with an annual dividend yield of 10.95% in 2023 as of December 1 Dec 2023.
Woodside Energy Group's positive dividend performance over the past five years reflects the company's commitment to delivering value to its shareholders. For the half-year period that ended on 30 June 2023, the company declared an interim dividend of 80 US cents per share. This dividend represents approximately 80% of the underlying NPAT for that period. An 80% payout ratio is a substantial distribution of earnings to shareholders.
Frequently Asked Questions (F.A.Q)
Which of the ASX stocks pays the highest dividends?
Yancoal Australia Limited, the largest coal-focused company on the ASX, provided an annual dividend yield of 21.92% as of December 1, 2023. Zimplats Holdings Limited has an annual dividend yield of 13.43% as of 1 December 2023.
What is the most preferable dividend or capital gain?
The investment should grow at a rate higher than the inflation rate. Therefore, good fundamental companies pay good dividends and also may provide a better return on equity. Small companies sometimes perform well during rallies, providing a huge gain on share price appreciation.
What are the best dividend stocks to own?
Some of the best and highest dividend-paying stocks on the ASX are as follows: Yancoal Australia Limited (ASX: YAL) has an annual dividend yield of 21.92%. Zimplats Holdings Limited (ASX: ZIM) has an annual dividend yield of 13.43%. Woodside Energy Group Limited (ASX: WDS) has experienced strong dividend growth, with an annual dividend yield of 10.95% in 2023.
What is a stable dividend policy?
A business with a stable dividend policy pays out a stable dividend every given period, irrespective of any given situation in the market. The exact amount of dividends that are paid out depends on the long-term, persistent earnings of the company.
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