- Investors have taken up dividend investing in a big way recently.
- Investors now seek to include stocks with high dividend-paying potential in their portfolios.
- Despite ongoing volatility, there are stocks which have managed to deliver decent returns along with dividends.
Dividend investing has picked up pace in recent years due to low interest rates and prevailing uncertainty in stock markets. Investors now seek to include stocks with high dividend paying potential in their portfolios, as these ensure a steady income even during financially challenging times.
The ASX All Ordinaries, the benchmark for the Australian equity performance, has fallen nearly 2% in the past month. Still, there are stocks which have managed to deliver decent returns along with dividends.
NOTE: However, high dividend-paying shares are not good always. A stock’s dividend yield might be on the higher side due to a significant fall in its stock price, implying financial trouble that could impact its ability to deliver future dividends.
On this note, let’s discuss five best performing ASX All Ordinaries dividend shares on a YTD basis:
Grange Resources Ltd (ASX:GRR)
Grange Resources is engaged in the exploration of gold and iron ore. It has presence in Malaysia and Australia.
Grange Resources’ stock has a dividend yield of 7.10% (as of Tuesday’s close) and has risen nearly 99% on a YTD basis.
The company’s shares have gained on account of rise in commodity demand in the past few months. In its full-year financial results, Grange Resources reported nearly 60% surge in earnings. The company’s net profit stood at AU$321.6 million, placing it in an ideal position to distribute healthy dividends.
Coronado Global Resources (ASX:CRN)
Coronado Global Resources is among the largest producers of high-quality metallurgical coal globally.
Coronado’s stock has a dividend yield of 5.21% (once the special dividend is factored in) and has offered over 81% gain on a YTD basis.
In its financial results for the period ending 31 March 2022, Coronado reported a record quarterly revenue of US$947 million, up 22.3% from the December quarter.
Whitehaven Coal Ltd (ASX:WHC)
Whitehaven Coal is the largest independent coal miner in Australia. It develops and operates coal mines.
Whitehaven’s stock has a dividend yield of 1.53% and has offered over 89% gain on a YTD basis.
Coal prices have surged sharply in the past few months as more nations join in banning Russian energy imports. Russia is one of the largest coal producers globally.
The prices of coal have risen 130% on a YTD basis. In the past 12 months, the prices have surged 296%.
Yancoal Australia Ltd (ASX:YAL)
Yancoal Australia is into the production of metallurgical and thermal coal required for usage in the steel and power generation industries.
Yancoal’s stock has a dividend yield of 11.79% and has offered over a return of over 119% on a YTD basis.
The company’s board had declared a total dividend allocation of AU$930 million for FY21. It included a final dividend of AU$0.5000 per share (unfranked) and a AU$0.2040 per share (unfranked) special dividend.
New Hope Corporation Ltd (ASX:NHC)
New Hope Corporation is engaged in coal mining, exploration, port operation, etc.
New Hope Corporation’s stock has a dividend yield of 9.13% and has offered nearly 76% YTD return.
The company’s profits were boosted by a surge in prices of coal in the recent months. It has assisted the firm to distribute perkier dividends to shareholders.
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