A dividend is a percentage of a company's profit that it distributes to its shareholders.
Dividends are decided by the board of directors of the firm.
Meanwhile, dividend yield (in percentage terms) is a financial statistic (dividend/price)
that shows how much a company pays out in dividends each year in relation to its stock
price.
Well-established corporations pay dividends to shareholders regularly in the form of interim
or final dividends.
On the other hand, a firm does not have to pay a dividend to its owners, and a dividend
can be paid in cash or extra stock.
On this note, let's discuss three materials stocks with more than a 10% dividend yield
as of 29 April 2022.
First on the list is Fortescue Metals Group (ASX:FMG)
Fortescue Metals Group Limited (Fortescue) is an iron ore mining corporation established
in Australia.
The company's primary focus is on iron ore exploration, development, production, processing,
and sale.
Fortescue owns a fully integrated infrastructure and supply chain, including the five-berth
Herb Elliott Port at Port Hedland, towage facilities at Judith Street Harbour, and a
620-kilometre heavy-haul railway.
The company's shares last traded at AU$21.63 each, down by 0.46% on ASX on Friday, 29 April
2022.
(Needs to be updated at the time of recording)
Fortescue paid an interim dividend of AU$0.86 per share on 30 March 2022.
It carries a dividend yield of 13.66%.
Second on the list is BHP Group (ASX:BHP)
Australian mining giant BHP Group Limited (ASX:BHP) produces copper and uranium, as
well as a copper smelter, copper refinery, and precious metals.
The company's segments include petroleum, copper, iron ore, and coal.
On 21 April 2022, BHP Group (ASX:BHP) issued its FY 2022's third-quarter results, which
significantly reduced output across the board.
BHP's gross iron ore output fell roughly 10%, and nickel output fell roughly 13% in the
third quarter compared to the previous quarter.
The mining behemoth blamed the drop in output on COVID-19-related workforce shortages and
temporary labour restraints.
BHP has an annual dividend yield of 9.98%.
The mining giant last paid an interim dividend of AU$2.08 per share on 28 March 2022.
The company's shares ended 0.02% lower on ASX on 29 April 2022.
(Needs to be updated at the time of recording)
Last on the list is Rio Tinto (ASX:RIO)
Rio Tinto is a diversified resources and mining corporation that explores a wide range of
minerals worldwide,
with a particular concentration on North America and Australia.
Aluminium, copper, energy goods, gold, iron ore, and other minerals are Rio's main products.
On 20 April 2022, the company released its first-quarter production results for FY 2022.
The company's Pilbara iron ore production in 1QFY2022 was 71.7 million tonnes, down
6% from the first quarter of 2021 (1QFY2021).
The 13.6 million tonnes of bauxite produced in the first quarter of 2021 were the same
as the previous quarter.
Aluminium production, which remained at 0.7 million tonnes, was 8% less than in the first
quarter of 2021, and Titanium dioxide slag production fell by 2% in the first quarter
of 2021, to 273K tonnes.
On 21 April 2022, Rio paid a final dividend of AU$6.63 per share.
The company has a dividend yield of 12.61%.
Rio's shares ended the day's trade at AU$112.83, up by 0.027% on 29 April 2022.
(Needs to be updated at the time of recording)