3 top ASX dividend stocks paying market-beating passive income

MotleyFool
25 May

Looking for some top ASX dividend stocks to earn some market-beating passive income?

You've come to the right place.

If you're like me, there's nothing like the sound of dividends hitting your bank account on the heels of your ASX stock holdings' half-year and full-year earnings results.

OK.

There is no sound.

But you get what I mean.

Earning passive income from your investments, while also hopefully watching their share prices push higher, beats the heck out of working longer hours.

Just bear in mind that a properly diversified income portfolio should contain more than just three stocks. There's no magic number. But 10 is a decent ballpark, with the companies ideally operating in various sectors and geographic locations. That will reduce the overall risk to your passive income portfolio if one company or sector hits a rough patch.

And remember that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific or macroeconomic factors.

With that said, here are three high-yielding ASX dividend shares that I believe also have strong potential to deliver capital gains in the year ahead.

Tapping into ASX dividend stocks for passive income

First up, we have dual-listed, New Zealand-based satellite TV provider Sky Network Television Ltd (ASX: SKT).

Over the past 12 months, Sky Network has paid 18.7 cents a share in unfranked dividends, and its share price has increased 5.0%.

At Friday's closing price of $2.46, Sky Network shares trade on an unfranked trailing dividend yield of 7.6%.

As for the passive income and share price outlook, this week, Macquarie Group Ltd (ASX: MQG) called Sky Network "one of the most undervalued stocks". The broker has an outperform rating on the stock, with expectations of a materially higher share price and dividend payments in the year ahead.

The next ASX dividend stock to consider for market-beating passive income is Woodside Energy Group Ltd (ASX: WDS).

Over the past 12 months, the Aussie oil and gas giant has paid out $1.87 a share in fully franked dividends, and the Woodside share price has fallen 22%.

At Friday's closing price of $21.58 a share, Woodside trades on a fully franked trailing dividend yield of 8.7%.

As for the outlook, Simon Mawhinney, chief investment officer at Allan Gray, said earlier this week that he believes "there's an asymmetric skew to the upside" for Woodside shares. "That's one of the reasons it's our largest investment," he noted.

Which brings us to the third-top ASX dividend stock offering market-beating passive income, WAM Capital Limited (ASX: WAM).

Over the past 12 months, the asset manager has paid out 15.6 cents a share in dividends, franked at 60%. The WAM Capital share price has gained 6% over this time.

At Friday's closing price of $1.57 a share, WAM Capital trades on a partly franked trailing dividend yield of 9.9%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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