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Income investors are always on the lookout for high-performing stocks. However, high yields do not necessarily mean a high overall return. Eg. Sometimes high-yield stocks can be misleading because of their high-yield but depressed stock prices; this is known as a ‘fallen angel’. No matter how you look at them, we have put together a list of the 5 highest paying ASX 200 stocks based on dividends.
It is perhaps no surprise that iron ore producers are strongly involved in the highest-yielding stocks in S & P / ASX 200 Index (ASX: XJO). This is a product of mainly two dominant factors that have played out over the last year. First, the rising price of steel products in the first half of the year. Secondly – ironically – the falling price of the same product since July.
We will soon cover this in more detail, but let’s now dive into the highest performing stocks in the ASX 200.
High-performance ASX dividend stocks
Cromwell Property Group (ASX: CMW)
The first cab in the series is the diversified real estate investor and manager, Cromwell Property Group. Some background on Cromwell – it holds nearly $ 12 billion in assets under management with over 2,700 tenant customers. These real estate assets are spread over 15 countries, where the majority of the premises are rented as office space.
At the time of writing, Cromwell is offering a dividend yield of 8.2% based on dividend payments made over the past 12 months. The annual dividend per. Equity (DPS) has been declining since 2018, while the dividend yield has been between 6% and 9%. This is due to the recent decline in the Cromwell Property share price, which is increasing dividends.
BHP Group Ltd (ASX: BHP)
Next on the list of the highest dividend stocks in the ASX 200 is Australia’s third largest listed company, BHP.
A booming period for commodities meant that the diversified miner experienced an offensive year for profits. In return, the company released a dividend bonanza on its shareholders. The increase in dividends paid to shareholders increased ~ 150% from year to year, bringing the dividend yield to 10.5%.
However, it is worth noting that this dividend has increased with the BHP share price collapsing ~ 30% from its highs due to the falling iron ore price.
AGL Energy Limited (ASX: AGL)
Another victim of declining DPS and rising dividends is one of Australia’s oldest companies, AGL Energy. It appears that the $ 4 billion electricity and gas provider could not get a break in the last 12 months as extra costs piled higher and higher. Provisions for contracts for renewable energy purchases outside the money and restoration of generations of websites dragged AGL down to a loss of $ 2.06 billion in 21 FY.
Despite the disaster, the company paid a total of 65 cents per. Share in dividend over the past year. Based on the current AGL share price, this corresponds to a dividend of 10.6%. Once again, this dividend is increased by the company’s share price falling 54.3% during the payment of these dividends.
Rio Tinto Limited (ASX: RIO)
That brings us to the second-highest dividend stock in the ASX 200, Rio Tinto. Again, following a common theme for the cash heavy iron ore producers, Rio Tinto has been going with a dividend for the last 12 months.
When profits ballooned to $ 18.8 billion, up from $ 7.2 billion the year before, the mini-giant had plenty of ammunition to distribute large payouts to shareholders over the past 12 months. As a result, the company’s DPS for the last year stands at US $ 9,312. This equates to a dividend of 13% based on the current Rio Tinto share price.
Fortescue Metals Group Limited (ASX: FMG)
Finally, the highest dividend stock in the ASX 200 is the fast-growing Aussie iron ore producer, Fortescue Metals.
The benefit of rising iron ore prices in the first half of the year, led by Andrew ‘Twiggy’ Forrest, increased its earnings by more than double that of the previous year. As a result, the company decided to increase its dividend by a similar percentage, increasing from US $ 1,403 to US $ 3,035 over 12 months.
Unfortunately for shareholders, the Fortescue share price was hardest hit by the major iron ore producers and fell by almost 50% over the last few months. As a result, the company’s dividend yield has been inflated to an astronomical 27.9% – making it easily the highest dividend stock dividend in the ASX 200.