A look at three fully franked dividends stocks for 2022


  • Dividends are given to the stockholders by Australian resident businesses that are taxed under imputation.
  • ASX-listed players BHP, RIO and MIN, have provided fully franked dividends in their financial results for the period ended 30 June 2021.
  • Their progress in September 2021 quarter is quite impressive.

Dividends are given to the shareholders by Australian resident companies are taxed under a system called imputation. The tax paid by the business is allotted to stockholders as franking credits connected to the dividends they get.

In this article, we will talk about three well known ASX players from the materials sector providing 100% franked dividends. These Companies have provided excellent dividends in their recent results for the period ended 30 June 2021. In this article, we will see their latest quarterly updates and other developments.

BHP Group Limited (ASX:BHP)

BHP Group is into minerals exploration, production and processing, including coal, iron ore, copper and manganese ore. It is also engaged in hydrocarbon exploration, production and refining.

On 19 October 2021, the Company released its September 2021 quarter results and safely delivered reliable operational performance. It executed a series of strategic major maintenance activities across its assets. Its major projects underway are progressing as per the plan. It signed two new projects in the US Gulf of Mexico, namely the Jansen Stage 1 potash project and the Shenzi North development project, which was approved during this quarter.

In FY2021, the Company delivered a 42% growth in revenue to US$60,817 million and a 42% growth in net profit to US$11,304 million. It provided a fully franked final dividend of AU$2.715 (US$2.00) per share on 21 September 2021. It has an annual dividend yield of 10.53% as of 27 October 2021s.

ALSO READ: BHP and Wyloo lock horns over Noront takeover

Significant FY2021 revenue growth for BHP, RIO,

Rio Tinto Limited (ASX:RIO)

Rio Tinto produces copper, gold, iron ore, coal, aluminium, borates, titanium dioxide and other minerals and metals.

In 1H FY2021, RIO achieved record financial results with a 71% growth in the consolidated sales revenue to US$33,083 million. Underlying EBITDA increased by 118 % to US$21,037 million. It made a massive profit of 271% to US$12,313 million.

In 1H FY2021, the Company provided an interim dividend of AU$7.600 per share. It has an annual dividend yield of 13.31%.

In Q3 FY2021, RIO reported a 2% growth in Pilbara iron ore shipments to 83.4 Mt. Iron Ore production dropped 4% to 83.3 Mt.

Do WATCH: Rio Tinto squeezes its iron ore shipment forecast for 2021

Bauxite, Aluminium, Mined copper, Titanium dioxide slag and IOC iron ore pellets and concentrate production was 14 kt, 774 kt, 125.2 kt, 209 kt and 2.2 Mt, respectively.

In Q3, the Company entered into partnerships to advance its work to decarbonise the value chain.

ALSO READ: Rio (ASX:RIO) unveils strategy to cut carbon emissions

Mineral Resources Limited (ASX:MIN)

Mineral Resources is an innovative and leading mining services company with a rising portfolio of mining operations around several commodities like iron and lithium. In FY2021, the Company generated an Underlying EBITDA of AU$1,901 million, up 148% compared to pcp. Underlying NPAT increased by 230% to AU$1,103 million and Statutory NPAT by 26% to AU$1,268 million on pcp.

It provided a 100% franked final dividend of AU$1.750 and has an annual dividend yield of 6.89%.

In Q1 FY2022, MIN reported a 7% increase in Mining Services production volumes. Safety performance for the Q1 FY2022 remained stable. Total Iron ore shipments and production during the quarter was 5 million wmt, in line with the previous quarter.  Iron ore shipment increased 40% compared to the previous corresponding period. Besides, the Company also identified a significant gas discovery at Lockyer Deep-1.

Bottom Line

The above ASX-listed players delivered firm results in FY2021, and impressive fully franked dividends post the release of their respective financial results. Their progress in the September 2021 quarter is quite impressive, indicating a positive outlook in the coming period.





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