Hello everyone. Welcome to the Smart Market Insights here on Kalkine TV. I’m Holly,
and today we will be shining some light on ASX dividend shares amid rising inflation.
With inflation already on the higher side and interest rates all set to be increased,
investors are looking at dividend shares to boost their income. Rising consumer prices
and interest rates are known to discount the future values of a firm's profits.
In such a scenario, dividend shares are expected to provide investors with impressive yields,
countering the inflationary pressures that the Australian economy is currently facing.
However, high dividend-paying shares are not always good.
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.
Let's now look at 4 ASX dividend shares that pay high dividends amid rising inflation.
First is BHP. Mining stocks offer protection from inflation since
the price of commodities generally surges when prices are accelerating. BHP Group is
a well-known global resources company with key operations as an iron ore miner and oil player.
BHP Group declared a record dividend in the first half of the financial year 2022 and announced an
interim dividend of US$1.50 per share, up from US$1.01 a share declared a year ago.
BHP has given a dividend yield of 9.89 percent as of April 22 2022.
Second on the list is Fortescue Metals Group. Fortescue Metals Group is a well-known global iron
ore miner engaged in the exploration, development, production, processing and sale of iron ore.
The company generates higher earnings and dividends when prices of iron ore rise.
In the first half of FY22, the ASX dividend share paid an interim dividend
of 86 cents per share. It represents a 70 percent payout of the first-half net profit after tax.
FMG has a dividend yield of 13.99 percent as of April 22.
Third on the list is the Commonwealth Bank of Australia. The Commonwealth Bank of Australia,
or CommBank, is an Australian multinational bank with businesses across New Zealand,
Asia, the US, and the UK.
Commonwealth Bank of Australia raised its dividend by 17 percent to AU$1.75
a share. The company's last-year interim payout was AU$1.50 per share.
In the 2021 financial year, Commbank paid an annual dividend of AU$3.50 per share.
CBA has a dividend yield of 3.55 percent as of April 22.
Finally, the last stock on our list today is Rio Tinto. Rio Tinto Group is an Anglo-Australian
multinational company that is the world's second-largest metals and mining corporation.
Rio Tinto announced the highest-ever dividend to its shareholders
in its half-yearly report for the financial year 2022.
The global iron ore giant's board declared a US$16.8-billion full-year dividend, equivalent to
1,040 US cents per share and 79 percent of underlying earnings. It includes a US$6.7 billion
record final ordinary dividend (417 US cents per share) and US$1 billion final special dividends.
Rio has a dividend yield of 12.52 percent as of April 22.
Well, that’s all for now. We will be back again with the exclusive Smart
Market Insights Show on Moday. Till then, keep watching Kalkine TV for the
latest market updates and related insights. I’m Holly, signing off
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