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How I would build a $100,000 high-yielding ASX dividend portfolio

If you’re after raw yield through solid, high-payout ASX dividend shares – you’ve come to the right place. The ASX (due to our tax system) has a wide array of dividend paying shares to choose from, so here are the ones I would pick to build a $100,000 portfolio that will pour cash and franking credits into your pocket every six months.

National Australia Bank Ltd (ASX: NAB) – $20,000

NAB has the distinction of being the second-highest yielding ASX bank and currently offers a grossed-up dividend of 8.9% on current prices. I think this dividend is reasonably safe as well, as NAB has already given it a haircut this year. I think NAB is a great income stock to own – its highly efficient banking business model continues to generate mountains of cash every year, and I think NAB’s dominance of the business banking sector is a bonus too.

Westpac Banking Corp (ASX: WBC) – $20,000

Meanwhile, Westpac offers the largest bank yield – currently at 9.04% grossed-up and I’ve thrown it in for all the same reasons as NAB, except for Westpac’s higher exposure to the property/mortgage market.

AGL Energy Ltd (ASX: AGL) – $20,000

AGL is another dividend-paying monster, currently offering a 6.22% yield with 80% franking. Gas and electricity are some of the most inelastic services you can invest in anywhere, and this makes AGL a desirable, recession-resistant business to have in an income focused portfolio. The company also just bumped up its final dividend to 64 cents per share, which is a further sign that this stock is worth holding in a high-yielding portfolio.

Transurban Group (ASX: TCL) – $20,000

Transurban is an ASX dividend favourite – mostly due to its highly defensive earnings base (tolled roads). By owning some of the most important arterial roads and motorways in Sydney, Melbourne and Brisbane (all built with contracted and inflation-linked toll rises), I think this company will be raking in the cash for decades to come. Any Sydneysider will tell you that it’s almost impossible to avoid a Transurban-owned road if you want to go anywhere in the city. TCL shares are currently offering a 4.06% yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD) – $20,000

Similarly loved by income investors is Sydney airport. By owning the single commercial and international airport in NSW, this company has a virtual monopoly on the state’s airways (at least until the second Sydney airport opens in 2026). Our low dollar is making tourism more attractive to boot, so I think this company – with a current yield of 4.76% – is a fantastic way to round out our dividend portfolio.

Foolish Takeaway

With these five stocks, I think we have a diversified, high-yielding portfolio of dividend shares that will ensure a strong flow of income for years to come, with some franking credits on top. It’s also a fairly recession-resistant portfolio, with the banks balanced with defensive infrastructure and services stocks.

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and Transurban Group. The Motley Fool Australia owns shares of National Australia Bank Limited. 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.

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