3 high-yield ASX shares for considerable passive income (7%-plus dividends!)

Reliable and ideally high-yield passive income is the primary goal of income investors, and ASX 200 shares deliver a respectable long-term average dividend yield of about 4%, plus some franking.

But in today’s era of 5.75% savings rates, that just ain’t good enough!

We need to pick some higher-yield ASX shares if we want to beat the no-risk return rate, not to mention stay ahead of inflation, which is currently 4.1% per annum (but falling).

We reviewed the 2024 consensus dividend forecasts for a variety of ASX shares on CommSec to uncover three high-yield options for your consideration.

3 high-yield ASX shares tipped to pay 7% dividends or more

Fortescue Ltd (ASX: FMG)

As published on CommSec, the consensus forecast annual dividend for this ASX 200 mining giant this year is $2.134 per share. This is higher than the 2023 dividend of $1.75 and the 2022 dividend of $2.07.

You can thank high iron ore prices for that!

Let’s see how this translates for ASX income investors purchasing $10,000 worth of Fortescue shares. Based on the current price (at the time of writing) of $29.51, that buys 338 Fortescue shares for $9,974.38.

If we multiply 338 by $2.134, we get a total annual dividend of $721.29. The gross dividend, including 100% franking, equals $1,030.42.

That brings your total gross dividend yield to 10.33%, making this a considerably high-yield share in 2024.

That leaves the savings and inflation rates in the (Pilbara) dust!

Westpac Banking Corp (ASX: WBC)

The consensus forecast annual dividend for Westpac shares in 2024 is $1.424 per share. This is a tad higher than the 2023 dividend of $1.42 and the 2022 dividend of $1.25.

Now for our case study.

Our passive income investors purchase $10,000 worth of this ASX 200 bank share. They pay the current Westpac share price of $23.72, giving them 421 shares at a total cost of $9,986.12.

If we multiply 421 by $1.424, we get a total annual dividend of $599.50. The gross dividend, including the 100% franking, equals $856.43.

That’s a total gross yield of 8.58%, meaning this high-yield share also beats today’s savings and inflation rates.

Ampol Ltd (ASX: ALD)

The consensus forecast annual dividend for Ampol shares this year is $1.995 per share. This is down on the 2023 dividend of $2.50 but higher than the 2022 dividend of $1.61.

Investors who buy $10,000 worth of this ASX 200 energy share at the current price of $36.62 would end up with 273 Ampol shares. Total cost: $9,997.26.

If we multiply 273 by $1.995, we get a total annual dividend of $544.63. The gross dividend, including the 100% franking, equals $778.05.

That brings your total gross dividend yield to 7.78%.

Boom. Ampol is another high-yield dividend share that beats the savings and inflation rates of today.

The post 3 high-yield ASX shares for considerable passive income (7%-plus dividends!) appeared first on The Motley Fool Australia.

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More reading

• Better buy: Westpac or CBA shares?
• 2 ASX 200 dividend shares to buy in 2024 for dependable passive income
• Westpac ordered to pay $10 million after ‘unconscionable conduct’
• Breaking! NAB shares (and CBA) just hit a new 52-week high
• $30 each? Here’s why the Fortescue share price just hit a new all-time high

Motley Fool contributor Bronwyn Allen has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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