Get paid huge amounts of cash to own these ASX dividend shares

You can get paid big amounts of cash to own these ASX dividend shares like Fortescue Metals Group Limited (ASX:FMG) in your income portfolio.

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You can be paid huge amounts of cash to own the ASX dividend shares in this article in your portfolio.

If you鈥檙e trying to generate income then the RBA鈥檚 official interest rate of 0.25% isn鈥檛 going to do much for you unless you鈥檙e just protecting capital though the coronavirus crisis.

But there are some ASX dividend shares which will handsomely reward you for owning them over the years:

WAM Research Limited (ASX: WAX)

WAM Research has a grossed-up dividend yield of 11.1%. It has increased its dividend every year since the GFC. There are few shares that could have provided as much dividend income to investors over the past 10 years. I think it鈥檚 one of the best ASX dividend shares.

It鈥檚 a listed investment company (LIC) that invests in undervalued small and medium businesses. It has generated lots of profit in the past, which allows the LIC to steadily pay out a growing fully franked dividend.

One pleasing factor is that it usually holds a high cash balance for downside protection and opportunities.

Naos Emerging Opportunities Company Ltd (ASX: NCC)

Naos Emerging Opportunities Company has a grossed-up dividend yield of 13.8%. It hasn鈥檛 decreased its dividend in its fairly short existence. Recently it has been maintaining the dividend, but there was a string of increases before that. With such a high yield, just maintaining the dividend would be great from this ASX dividend share.

Naos is another LIC that invests in shares with market capitalisations under $250 million. It鈥檚 finding those shares that are undiscovered to the rest of the market. It鈥檚 then able to turn some of those capital gains into a solid dividend. Those small caps hopefully have a lot of growth potential.

Fortescue Metals Group Limited (ASX: FMG)

Australian resource shares are known for being decent ASX dividend shares through the cycle. In the good times they are dividend cash machines.

As long as the China-Australia relationship remains amicable then Fortescue should be able to keep generating solid returns and paying those big dividends.

It currently offers a trailing grossed-up dividend yield of 11.5%. That鈥檚 a very solid yield in the current world.

Which ASX dividend share to buy

Fortescue鈥檚 yield does look attractive, but you鈥檙e up for commodity risks if you go for that one. It鈥檚 hard to pick a winner of the other two ASX dividend shares. WAM Research is trading at a sizeable premium to its net assets, though I like the cash position and added diversification that WAM Research鈥檚 portfolio has.

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*Returns as of January 12th 2022

Motley Fool contributor Tristan Harrison 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.

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