Which resources company pays the most dividend?

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Which resources company pays the most dividend?

 Which resources company pays the most dividend?
Image source: © Lightkeeper | Megapixl.com

Highlights

  • Dividends are a reliable source of return for investors when making investments in the stock market.
  • The payment of a dividend is dependent on profits made by a company in a stipulated tenure.
  • ASX-listed resource stocks are the best choices for investors when it comes to dividend payouts.

Many companies listed on the ASX elect to pay multiple dividends in a year. An interim dividend is paid by companies during the half-year, whereas a final dividend is renumerated at the end of the financial year. The dividend yield is the ratio of cash dividends paid to shareholders to the market value of each share. A good dividend yield is higher than the current interest rate.

Dividends are the important aspect of investing in the stock market. Dividends are the form of a reliable source of return. Over the past two decades, ASX has delivered a return of around 9% to 10%. However, the payment of a dividend is dependent on the profits made by a company in a particular tenure and if the company is offering a dividend yield of 4% to 6% coupled with growth potential is an attractive deal.

Good Read: What stock pays the highest dividend?

Keeping all these above points in mind, let us look at six dividend stocks from the resource sector that are considered among the best in their market segment.  Fortescue Metals Group Limited

Fortescue Metals (ASX:FMG) is the fourth-largest iron ore producer in the world. FMG is among the leading supplier of seaborne iron ore to China and has expanded its market to South Korea and Japan. The miner has world-class mining assets and infrastructure in the Pilbara region of Western Australia.

Mines site

Source: © Milslav78 | Megapixl.com

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

AGL Energy Limited

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

Rio Tinto Limited

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.

Rio Tinto

Source: © Rbrucew | Megapixl.com

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

Alumina Limited

Alumina Limited (ASX:AWC) is the world’s largest bauxite producer. The company holds nearly 40% of Alcoa World Alumina and 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 U.S.

Regis Resources Limited

Regis Resources (ASX:RRL) is an ASX-listed gold-focused company. The company deals 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 explorations. RRL is among Australia's leading mid-tier gold companies.

Gold mining

Source: © Bendicks | Megapixl.com

BHP Group Limited

BHP Group (ASX:BHP) is the world’s leading resource company that is engaged in the production and development of minerals, oil and gas with a worldwide customer base. The company is a leading producer of copper, uranium, petroleum, iron ore, gold, etc. 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)

Many companies listed on the ASX elect to pay multiple dividends in a year. An interim dividend is paid by companies during the half-year, whereas a final dividend is renumerated at the end of the financial year. The dividend yield is the ratio of cash dividends paid to shareholders to the market value of each share. A good dividend yield is higher than the current interest rate.

Dividends are the important aspect of investing in the stock market. Dividends are the form of a reliable source of return. Over the past two decades, ASX has delivered a return of around 9% to 10%. However, the payment of a dividend is dependent on the profits made by a company in a particular tenure and if the company is offering a dividend yield of 4% to 6% coupled with growth potential is an attractive deal.

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