3 highest yielding ASX dividend shares

There are some ASX dividend shares on the stock exchange that have very high dividend yields.

Here are three examples:

Fortescue Metals Group Limited (ASX: FMG)

Fortescue has a trailing grossed-up dividend yield of 11.1%.

It has grown to become one of the largest miners on the ASX, with a market capitalisation of around $70 billion according to the ASX.

In an ASX announcement the company recently said that it generated net profit after tax (NPAT) of more than US$940 million for the month of December 2020. It also said that preliminary, unaudited NPAT for the six months ending 31 December 2020 will be in the range of US$4 billion to US$4.1 billion.

In the ASX dividend share’s quarterly production update for the three months to 31 December 2020, it said that it saw iron ore shipments of 46.4 million tonnes (mt) in the quarter which contributed to record shipments for the half year of 90.7 mt.

Revenue per tonne increased by 15% compared to the first quarter of FY21.

Net debt reduced to US$0.1 billion. Fortescue said its balance sheet was focused on low cost, investment grade terms while maintaining flexibility to support ongoing operations and the capacity to fund future growth.

Pacific Current Group Limited (ASX: PAC)

Pacific has a grossed-up dividend yield of 8%.

This business is about finding quality investment managers around the world and taking a minority investment stake in them, then helping them grow with its expertise.

It has investments in a number of different managers including GQG, ROC and Victory Park.

Pacific says that it has a pipeline of new investment opportunities, with additional investments expected in the second half of FY21.

In FY20 the ASX dividend share saw funds under management (FUM) increase 62% to $93 billion, which helped underlying earnings per share (EPS) grow by 18% to $0.51. The Pacific Current board decided to increase the FY20 dividend by 40% to $0.35 per share.

In the period ending 31 December 2020, Pacific Current said that funds under management (FUM) controlled by the boutique asset managers within Pacific Current increased to $112.8 billion, an increase of 8.3% from 30 September 2020.

In that quarterly update, Pacific Current said that GQG’s assets once again posted significant increases, ending a 12-month period that saw FUM grow by more than US$35 billion.

The ASX dividend share is considering launching a new fund to invest the company because it has the ability to deploy far more capital than it can access. Pacific Current would receive management fee revenues from the fund as well as co-investment rights.  

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long WALE REIT has a FY21 distribution yield of 6.2%, assuming a 100% distribution payout ratio as per management comments and last year’s payout ratio.

This real estate investment trust (REIT) owns a diversified portfolio of properties across Australia. It’s exposed to the following different tenant industries: telecommunications, government, grocery and distribution, convenience retail (service stations), pubs and bottle shops, food manufacturing, waste and recycling management and ‘other’ such as Bunnings Warehouse properties.

It has one of the longest weighted average lease expiry (WALE) profiles in the industry, with a WALE of 14.2 year.

Some of its biggest tenants include Telstra Corporation Ltd (ASX: TLS), government entities, BP, Woolworths Group Ltd (ASX: WOW), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS).

The ASX dividend share is expecting to make operating earnings per share (EPS) of at least 29.1 cents in FY21.

More reading

• Got cash to invest? Here are 3 ASX shares to buy
• Why investors should look beyond the Reddit army to these ASX fundamentals
• BHP Energy and Zip were among the most traded ASX shares last week
• Here’s why the Fortescue Metals (ASX:FMG) share price fell 12% in January
• Why this fund likes these 3 ASX shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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