Which resources company pays the most dividend?

Summary

• Dividend, a reliable source of income for many investors, is considered as an important factor while making investment decisions.
• Decided by the Board of a company, dividends can be paid monthly, quarterly, or annually.
• The payment of a dividend depends on a company’s profits, as it is a portion of the income distributed among the shareholders.
• ASX-listed resource stocks are among the best when it comes to dividend payouts.

Many companies listed on the ASX elect to pay dividends to their shareholders twice a year. Generally, an interim dividend is paid for the first half, while a final dividend is announced by the end of the financial year.

Dividend is one of the important aspects when evaluating investment in the stock market. They are considered a reliable source of income. The payment of a dividend is dependent on the profits made by the company in a particular tenure.

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Dividend yield is the ratio of cash dividend paid to the shareholders to the market value of each share. A company with a high dividend yield highlights that a major portion of its profits is directed towards dividends. 

Good Read: What stock pays the highest dividend?

On that note, let us look at few ASX-listed dividend stocks from the resources space that are considered among the best in their segment.

Fortescue Metals Group (ASX:FMG)

Fortescue Metals Group (ASX:FMG) is one of the largest iron ore producers in the world. It is among the leading suppliers of seaborne iron ore to China and has expanded its markets to various countries including South Korea and Japan.

The miner has world-class assets and infrastructure in the Pilbara region of Western Australia.

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FMG paid an interim dividend of AU$1.47 per share in March 2021. The dividend was paid for the six-month period to December 2020. The annual yield stands at 10.63% at the current share price of AU$23.27. A final dividend is expected to be announced in August 2021.

Also Read: Fortescue Metals (ASX:FMG) Vows To Go Carbon Neutral by 2030, 10 Years Ahead of Target

AGL Energy (ASX:AGL)

AGL Energy (ASX:AGL) is an Australia-based resources space player with a nearly 184-year history of innovation and technology. AGL serves customers across the country. The company has the country's largest electricity generation portfolio. It is also a leading investor in the renewable energy sector.

AGL targets a payout ratio of nearly 75% of underlying profit after tax with a minimum franking of 80%. The company paid a dividend of AU$0.41 per share in March 2021, including AU$0.31 as an ordinary dividend and AU$0.10 as a special dividend. The annual dividend yield for the company stands at 9.87% at the current share price of AU$9.31.

Rio Tinto (ASX:RIO)

Rio Tinto (ASX:RIO) is the world's second-largest metal and mining company. The mining giant deals with the exploration, development, and production of iron ore, copper, aluminium, diamond, uranium, and gold. RIO has its operations across 35 countries. The mining giant serves the entire value chain of the mining industry.

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The total level of ordinary dividends per share is decided at the end of each financial year, considering commodity prices and outlook along with fiscal year performance. This year, RIO paid a dividend of AU$5.171 per share in April 2021. The annual dividend yield sits at 5.87% at the current share price of AU$125.86.

Also Read: Rio Tinto (ASX:RIO) appoints former Treasurer and Aboriginal affairs Minister to its board

Alumina (ASX:AWC)

Alumina (ASX:AWC) is a leading player in the global bauxite market. The company owns nearly 40% of Alcoa World Alumina & Chemicals through a joint venture with Alcoa. The company is listed on both the Australian Securities Exchange (ASX) and the Over-the-Counter (OTC) market in the US.

In February 2021, the management declared a final dividend of AU$0.037 per share with a payout date of 16 March 2021. The company’s annual yield stands at 4.33% at the current share price of AU$1.725.

Regis Resources (ASX:RRL)

Regis Resources (ASX:RRL) is an ASX-listed gold-focused company, dealing in the exploration and production of gold with mid-size operations in Africa and Australia. The miner has a track record of robust reserve growth and production underpinned by target acquisitions and successful exploration. RRL is among Australia's leading mid-tier gold companies.

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Regis Resources paid an annual dividend of AU$0.04 per share in March this year. It has a dividend yield of 4.49% at the current share price of AU$2.67.   

BHP Group (ASX:BHP)

BHP Group (ASX:BHP) is the world’s leading resource company engaged in the production and development of minerals and oil & gas with a worldwide customer base. The company is a leading producer of copper, uranium, petroleum, iron ore, gold and other minerals. Most of the business units of the miner are located in Australia and America.

Must Read: Who owns the most shares in BHP Group (ASX:BHP)

BHP paid a dividend of AU$1.311 per share in March 2021. The annual dividend yield sits at 4.22% at the current share price of AU$49.21.