Top-quality ASX 200 dividend shares are like gold dust in times like these. We’ve well and truly emerged from the March bear market, but the cost has been many companies slashing their distributions to shareholders.

Whether you’re a retiree or a young investor, dividend shares are a valuable part of any portfolio. Regular dividends can provide handy income or be reinvested to turbo-charge your retirement plans.

With that in mind, here are a few of my top dividend shares that are yielding over 8% right now.

3 ASX 200 shares with hefty dividend yields 

For dividends, the Aussie real estate investment trusts (REITs) are an obvious place to start. The trust structure of the REITs means 90% or more of their profits are paid to investors each year.

That’s why Scentre Group (ASX: SCG) boasts an impressive 8.67% dividend yield right now. Scentre owns and operates Westfield shopping centres across Australia and New Zealand. Clearly, Aussie retail hasn’t been doing well amid the coronavirus pandemic and this has been reflected in the Scentre share price.

The ASX 200 retail REIT has slumped 42.3% lower this year as investors have flocked to safety. While Scentre’s earnings may fall and lead to lower dividends, it could also be a cheap buy if you’re looking at the long-term.

Provided shopping centre foot traffic bounces back, government stimulus could prop up rents in the short-term. That means Scentre’s earnings may not be as bad as many suspect and that 8.67% dividend yield may remain intact.

The other place I’m looking for ASX 200 dividend shares is the Aussie banking sector. Despite surging 15.9% higher in June, Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are still yielding a whopping 9.21% right now.

The Aussie banks have slashed distributions under the orders of the banking regulator, Australian Prudential Regulation Authority (APRA). APRA wants the banks to preserve capital in case we encounter a Great Recession-type downturn.

However, investors have still been reasonably bullish on the ASX banks like Bendigo. I personally don’t look to invest outside of the major banks within the banking sector, but Bendigo could be a good option if you think the big four are over-bought.

In terms of the big four, Westpac Banking Corp (ASX: WBC) shares also have a super-charged yield right now. Westpac is currently paying 9.54%, which is an impressive return if the bank can maintain its dividends in the long-term.

But… it’s buyer beware

As I said, top ASX 200 dividend shares are like gold dust right now. However, we’ll have to wait until the next earnings cycle (August or November) to really see which companies are able to maintain their dividends.

Dividend yields can be misleading in the current market, so be wary of buying for the headline yield numbers.

If you’re investing for the long-term, however, there could be some good ASX 200 shares to buy that can churn out profits well into the future.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• Is the Domino’s Pizza share price a good buy at $68?
• These 5 ASX shares saw the biggest losses last week
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• These 5 ASX shares were last week’s top performers

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are 3 ASX 200 shares with dividend yields over 8% appeared first on Motley Fool Australia.

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The iron ore spot price has climbed to 10-month highs following Vale’s decision to suspend iron ore mining at its Itabria site.

Prices are expected to remain high driven by the short-term concern of fewer shipments from Brazil. This is coupled with China’s port inventories being at a 3-year low and rising demand from Chinese steel mills.

Could this be an opportunity to buy in at the current Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and BHP Group Ltd (ASX: BHP) share price?

Iron ore shortage

Vale’s Itabria mining operations were suspended after at least 188 workers tested positive for the coronavirus. This site is responsible for approximately 12% of Vale’s total production. Vale’s supply in the short-term is at risk but it’s difficult to tell whether the company’s annual production will be impacted.  Broadly speaking, South America has struggled to contain the coronavirus – a near-term threat for its iron ore production and shipments.

An increasing dependency on Aussie miners to supply iron ore could be good news for the likes of Rio Tinto, Fortescue and BHP. 

Chinese iron ore consumption 

China has invested in its infrastructure, transport and energy sectors to claw its way back to positive growth. The construction sector is making a suggestive recovery judging by a rise in demand for cement and site machinery.

Data from the China Construction Machinery Association showed that the 25 largest excavator companies recorded sales up 60% year on year in May. Furthermore, the government announced plans to issue RMB$3.75trn worth of bonds to fund regional developments and support businesses hit by COVID-19.

Brazil’s production challenges coupled with an increase in construction activity in China could see iron ore prices remain at today’s elevated levels. 

Are Rio Tinto, Fortescue and BHP a buy? 

There are many near-term factors that point to higher iron ore prices. This would mean healthy margins and market-leading dividends from Aussie iron ore miners. 

Fortescue, being a pure iron ore play means its share price is more responsive to rising iron ore prices. Its shares hit a record all-time high last week of $15.25 while paying a dividend yield of 7.40%. Given how much it has run-up in recent times, I would personally avoid Fortescue shares for the time being. 

Alternatively, I believe the Rio Tinto and BHP share price represent good long-term value at today’s prices. Both shares are within 15% of its recent highs and pay a moderate dividend yield of around 6%. 

More reading

• These 5 ASX shares saw the biggest losses last week
• Infrastructure shares boosted by government spending
• ASX 200 Weekly Wrap: ASX back in the green
• Which shares to buy if the ASX tumbles
• 2 blue chip ASX 200 dividend shares to buy next week

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Iron ore prices: Are the Rio Tinto, Fortescue and BHP share prices a buy? appeared first on Motley Fool Australia.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a bad start and is storming higher. At the time of writing the benchmark index is up 0.25% to 5,957.8 points.

Four shares that are climbing more than most today are listed below. Here’s why they are starting the week with a bang:

The Austal Limited (ASX: ASB) share price is up 10% to $3.69. Investors have been buying the shipbuilder’s shares on Monday after it revealed that the U.S. government is investing US$50 million into its U.S. business. The agreement is part of the government’s national response to COVID-19 to maintain, protect, and expand critical domestic shipbuilding and maintenance capacity.

The James Hardie Industries plc (ASX: JHX) share price has climbed over 6% to $28.39. This morning the building materials company upgraded its guidance for the first quarter of FY 2021. James Hardie’s North American adjusted earnings before interest and tax (EBIT) margin is now forecast to be between 27% and 29% for the quarter. This compares with its previous guidance of 22% to 27%.

The Northern Star Resources Ltd (ASX: NST) share price is up 4.5% to $13.61. As well as getting a boost from a rising gold price, investors appear to have responded positively to an asset divestment announcement. The gold miner has agreed to divest the Mt Olympus Project, which comprises most of the Ashburton Project in Western Australia. It will be sold to Kalamazoo Resources Limited (ASX: KZR) for a deferred contingent cash consideration of $17.5 million.

The Ramelius Resources Limited (ASX: RMS) share price has jumped 14% to $2.04 after upgrading its production guidance. The gold miner revealed that its quarterly production is now expected to be in excess of 80,000 ounces. This compares to previous guidance of 65,000 to 70,000 ounces. In light of this, FY 2020 guidance is expected to be a record 225,000 to 230,000 ounces. This is up from its previous full year guidance of 210,000 to 220,000 ounces.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• James Hardie share price in spotlight as it upgrades profit guidance
• 5 things to watch on the ASX 200 on Monday
• Top fund manager reveals some of the best ASX shares to own

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Austal, James Hardie, Northern Star, & Ramelius are storming higher appeared first on Motley Fool Australia.

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