- Dividends are an important source of income for investors, However, increased dividend yield could involve risk as well.
- FMG, AGL, RIO are three dividend-paying stocks delivering double-digit dividend yields.
For long-term investors, dividends are an essential source of additional income earned above capital gains by holding the stocks. However, High yielding stocks generally offer more income. However, it might also involve risk. On the other hand, lower dividend yield stocks equal less income, but they are generally provided by established businesses with a long record of constant growth and payments. On ASX, there are multiple companies that offers a dividend. However, in this article, we would look at top ASX200 players providing double-digit dividend yields.
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Fortescue Metals Group Ltd (ASX:FMG)
Fortescue Metals Group is into mining, processing and transporting iron ore for export from its deposits in the Pilbara region of WA. Fortescue Metals has consistently provided dividends since 2011. FMG announced its final dividend of AU$2.110, payable 30 September 2021. It has an annual dividend yield of 19.44% as on 13 September 2021.
In FY2021, the Company delivered strong performance with a 74% increase in revenue to US$22.3 billion. Underlying EBITDA grew 96% on FY2020 to US$16.4 billion. NPAT for the period was US$10.3 billion. The total dividend for FY2021 is AU$3.58 per share.
In FY2022, FMG expects iron ore shipment in between 180 mt to 185 mt. Capital expenses would be between US$2,800 million - US$3,200 million.
On 13 September 2021, FMG shares closed at AU$ 18.410, up 0.766% from the previous close.
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AGL Energy Limited (ASX:AGL)
AGL Energy operates Australia's largest retail energy and dual fuel customer base and comprises of a significant portfolio of wholesale energy contracts. The Company has consistently provided dividends since 2012. It has announced a final dividend of 34 cents. It has an annual dividend yield of 12.35%.
The Company experienced a loss of AU$2,058 million, including AU$2,929 million of impairment losses, onerous deals and costs linked with acquisitions, restructuring and end of the Crib Point project.
Underlying EBITDA dropped 18% to AU$1,666 million and Underlying PAT by 34% to AU$537 million.
In FY2022, AGL expects its Underlying EBITDA of between AU$1,200 million and AU$1,400 million and NPAT between AU$220 million and AU$340 million.
On 13 September 2021, the company announced entering into a new Gas Sales Agreement (GSA) with Cooper Energy Limited (ASX:COE), an ASX-listed oil and exploration company, to facilitate supply from COE’s existing Casino, Henry, and Netherby wells.
On 13 September 2021, AGL shares closed at AU$6.070, down 0.655% from the previous close.
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Rio Tinto Limited (ASX:RIO)
Rio Tinto is into the production of copper, gold, iron ore, coal, aluminium, borates, titanium dioxide and other minerals and metals. The Company has consistently provided dividends since 2012. In 1H FY2021, it announced an interim dividend of AU$7.600 (US 561 cents), payable 23 September 2021. RIO has an annual dividend yield of 12.04%.
The Company reported a 71% growth in its consolidated sales revenue to US$33.1 billion. Underlying EBITDA increased by 118% to US$21 billion. Net earnings for the period was US$12.3 billion.
In FY2022, the Company expect sustained global recovery with key indicators of economic activity back to pre-COVID-19 levels. The Board anticipates total cash returns to stockholders over the long- term between 40% to 60% of underlying earnings in total through the cycle.
On 13 September 2021, RIO shares closed at AU$106.020, down 0.201% from the previous close.