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- Dividends help investors generate an additional profit, which is over and above of the capital appreciation of their shares.
- ASX miners such as BHP and FMG are currently among the most lucrative blue-chip dividend-paying companies on the ASX.
- While investing in the stock market, dividends of a company should not be the sole criteria to analyse an investment.
Regular dividend payments are one of the attractive features that lure investors towards blue-chip shares. These companies with fairly large and well-established underlying businesses generate consistent revenues from their operations, which are often spread across multiple countries.
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Dividends help investors generate an additional profit, which is over and above of the capital appreciation of their shares. Let us have a look at three ASX blue-chip stocks and see how much dividend they are forking out.
BHP Group is the largest miner in Australia, having a market capitalisation of AU$265.2 billion. The company has a wide portfolio of exploration projects. BHP clocked a revenue of AU$56.9 billion in FY21 and a net profit of AU$11.3 billion. The company also paid an interim dividend AU$2.081 per share on 28 March 2022, its first for CY22.
The dividend yield of the stock stands at an impressive 9.15%, while its year-to-date (YTD) return stands at 23.76%. The stock was trading at AU$52.46, as of 3:00 PM AEST on 4 April 2022, all thanks to surging commodity prices amid the Russia-Ukraine war.
CSL is a specialty biotechnology Australian firm that researches, develops and markets products to treat and prevent serious human medical conditions. The company has a market capitalisation of AU$128.2 billion and it is about to pay an interim dividend of AU$1.422 per share on 6 April 2022, with no franking credits. In CY21, the company paid a total dividend of AU$2.939 per share.
The company is currently quoting at a dividend of 1.13%. CSL shares have delivered a negative YTD return, having fallen 9.23% to AU$268.58 by 3:00 PM AEST on 4 April 2022. However, in the last one month, the stock is up 4.02%.
Fortescue Metals Group is another ASX frontline miner, having a market capitalisation of AU$64.8 billion. The company clocked the higher net profit of AU$10.3 billion, compared to the last few years, buoyed by the rising commodity prices which helped the company to expand its margins.
The miner paid a total of AU$3.58 per share of dividend in CY21, and AU$0.86 per share in March 2022. The current dividend yield of FMG shares is quite high, at 14.1%, making it one of the most lucrative blue-chip dividend stocks on the ASX. The YTD return of the stock is 9.29% to AU$21.7 by 3:00 PM AEST on 4 April 2022.
Dividend lovers tend to get attracted by lucrative dividend payouts. However, while investing in the stock market, dividends of a company should not be the sole criteria to analyse an investment opportunity and other factors such as balance sheet, p&l statement, management quality, etc. should also be looked at.
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