Looking for a high-yielding S&P/ASX 200 Index (ASX: XJO) dividend stock?
How does an 18% dividend yield sound? Oh, and that’s fully franked.
If it’s passive income you’re after, that’s likely gotten your attention.
Which ASX 200 dividend stock is yielding 18%?
The ASX 200 dividend stock in question is New Hope Corp Ltd (ASX: NHC).
The coal share, with a market cap of $4.7 billion, has benefited enormously from recent record-level thermal coal prices. While prices have come down from their all-time highs, thermal and coking coal prices remain elevated by historic standards.
That’s also helped drive the New Hope share price up an impressive 55% over the past 12 months.
Now, investing in an ASX 200 dividend stock focused on coal may not appeal to everyone.
But it certainly fits our diamond in the rough thematic.
Coal, after all, when exposed to enough pressure and high temperatures in the Earth’s mantle, will eventually produce diamonds. If you’ve got a few million years to wait, that is.
For those of us with decidedly less time to earn out fortunes, we return to ASX 200 dividend stock, New Hope.
Before continuing, do note that the 18% yield we’re quoting here is a trailing yield. It’s derived from the dividend payouts over the past 12 months.
Future dividend payments will rely on numerous factors. Those may be higher or lower, depending on the company’s cost efficiency and coal prices, among other factors.
Why are New Hope shares paying such a juicy yield?
On the back of a 102% year-on-year leap in net profit after tax (NPAT) for the six months through to 31 January, New Hope paid out an all-time high interim dividend, which followed on the miner’s prior all-time high final dividend.
New Hope paid out a 56 cents per share final dividend on 8 November. The miner will pay a 40 cents per share interim dividend next week, on 3 May. The stock traded ex-dividend on 17 April.
Accounting for next week’s payout, this ASX 200 dividend stock will have paid a total of 96 cents per share in dividends over the prior 12-month period, with full franking benefits.
At the current share price of $5.36, that works out to a yield of 17.9%.
