Highest yielding ASX dividend stocks: Here are 5 to take a look at!

The list of highest yielding ASX dividend stocks fluctuates substantially from year to year, and even from month to month. Sure, the list of companies that pay out the highest dividends rarely fluctuates – it is typically led by the Big Banks and Miners – but these are not necessarily the highest yielding. By yield, we mean return on the share price from the dividend alone. So if a stock at $4 per share paid a 40c per share dividend, that would be a yield of 10%.

Of course, it would be rare to make higher returns on dividends than from selling a stock for more than you bought it for, although it can take time to make substantial returns. Getting a high yielding dividend stock can make the wait more bearable, and perhaps even help with your finances. And so we have outlined some of the highest yielding ASX dividend stocks below.

We will not claim for these to be the highest yielding, but given all of them yield over 8%, it wouldn’t be unreasonable to assert they are up there. We are also excluding REITs because they only exist to pay dividends to their investors, and so would take up most of the top spots. Without any further ado, here are 5 of the highest yielding ASX dividend stocks.

5 of the Highest yielding ASX dividend stocks

Fortescue (ASX:FMG)

Just like iron ore prices, Fortescue’s yield is down from the highs of 2021, although it is yielding over 8% right now (over 10% if you account for franking credits). There are doubts as to whether or not the $70bn iron ore miner will be able to maintain this, given its green energy ambitions and the likely capex required to fund it. And the question as to where iron ore prices are headed next? Anyone’s guess is as good as ours.

Air New Zealand (ASX:AIZ)

Air New Zealand intends to pay out 40-70% of its underlying net profit after tax. Its final dividend for FY23 was 6c per share and 1HY24 dividend was 2c per share. With a share price of 50c, these represent 12% and 8% yields respectively on an annualised basis.

Of course, this is a company that is high yielding more because of a lower share price than a high payout ratio. Despite the post-COVID travel boom, Air New Zealand has struggled to capitalise with high fuel prices, intense industry competition and aeroplane engine issues, among other issues.

Jupiter Mines (ASX:JMS)

This stock has proven to be an exemption to the rule that companies won’t necessarily be at the top of the list forever. Capped at over $600m, Jupiter Mines owns the Tshipi Borwa mine in South Africa, the fourth largest in the world, producing 3.5Mtpa and having a 121-year mine life (not that is not a typo, it is 121 years and isn’t even the manganese mine with the longest life, even though it is near the top). It is a dividend payer, having paid an average yield of 12% since its IPO, more than double the ASX average of 5.2%, and has paid out more than double its market cap in over 5 years. It has $73m in cash on hand, zero debt and made a $10m profit in 1HY24.

Helia (ASX:HLI)

This stock was once known as Genworth, but had to change its name after it broke up with a US company it was affiliated with.

‘Helia, inspired by the sun, reflects who we are and how we use our expertise, experience, and understanding to show people possibilities, shine a light on solutions, and create brighter outcomes,’ CEO Pauline Blight-Johnston said at the time.

It unveiled its FY23 results back in February and not only paid a dividend of 29c per share, yielding 8.1%, but a special dividend of a further 30c per share, bringing the total yield to 16.5%. This payout was from a $275.1m profit and a Return on Equity of 21.1%. This was achieved off the back of a low claims environment and higher net investment revenue.

Magellan Financial Group (ASX:MFG)

For the record, we are not recommending investors buy any of the stocks that we have mentioned, particularly not Magellan given how far its FUM has fallen and the long road to recovery ahead of it. Indeed, the dividend payout was slashed 39% from 46.9c per share to 29.4c per share.

Nonetheless, on an annualised basis, this was a yield of over 7%. And it was achieved from a $104.1m profit, which was up 24% on the prior corresponding period. The company admitted more work was to be done to return to the glory days when it was the asset manager of choice, but boasted things were improving, and it seems they slowly are. However, even fund managers like GQG (ASX:GQG) that haven’t put a foot wrong so far as managing clientele and FUM are concerned have failed to garner much attraction from investors.

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