On the hunt for high-yielding ASX dividend shares to help fund an early retirement?
The good news is, you’re shopping in the right market.
Unlike companies listed in the United States and most other international exchanges, many ASX dividend shares come with franking credits. This means those companies have already paid corporate taxes on the passive income they’re paying to shareholders. And that means you may be able to hold onto more of that passive income come tax time.
With that said, let’s look at my top ASX dividend shares to help say goodbye to that full-time job early. Just keep in mind that we’re discussing trailing yields here. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.
You might notice
Now, you might notice they’re all S&P/ASX 200 Index (ASX: XJO) listed, and they all have lengthy track records of regular dividend payments.
You’ll also notice they all operate in distinctly different markets, a diversity that lowers my overall risk.
Finally, we only look at four stocks below. My ideal early retirement portfolio would hold at least 10 different ASX dividend shares.
Four ASX dividend shares to fund that early retirement
Up first we have BHP Group Ltd (ASX: BHP). Shares in the ASX 200 iron ore miner are up 17% over the past 12 months, currently trading for $45.60 apiece.
On the income front, BHP shares have delivered a final dividend of $2.552 per share and an interim dividend of $1.364 per share, both fully franked.
At the current BHP share price that equates to a very healthy trailing yield of 8.6% to help fund that early retirement.
Up next we have ASX dividend share, Commonwealth Bank of Australia (ASX: CBA). The ASX 200 bank stock is trading right about where it was a year ago, currently trading for $102.12 a share.
As for income, CBA paid out a final dividend of $2.10 per share and an interim dividend of $2.10 per share, fully franked.
At the current share price that works out to a trailing yield of 4.1%.
Which brings us to Woodside Energy Group Ltd (ASX: WDS). Shares in the ASX 200 oil and gas stock have gained 20% over the past 12 months, currently trading for $38.21 apiece.
Woodside shares delivered an interim dividend of $1.60 per share and a final dividend of $2.15 per share, for a full-year dividend payout of $3.75 per share, 100% franked.
At the current share price that equates to a trailing yield of 9.8%.
And the fourth high-yielding ASX dividend share I’d target for passive income to fund my early retirement is JB Hi-Fi Ltd (ASX: JBH). Shares in the ASX 200 retail stock are up 5% over 12 months, currently swapping hands for $46.17 apiece.
JB Hi-Fi shares delivered a final dividend of $1.53 per share and an all-time high interim dividend of $1.97 per share, both fully franked.
That works out to $3.50 per share in passive income, for a trailing yield of 7.6%.
Best of luck in your retirement years!
