Plenty of S&P/ASX 200 Index (ASX: XJO) shares have the potential to pay investors attractive dividend yields over the next 12 months. This article is about two high-yielding ASX 200 dividend shares.
Analysts have had a guess at what the business is going to pay in dividends over the coming 12 months.
Investors for income may be interested to know about these two ASX 200 shares:
Centuria Industrial REIT (ASX: CIP)
This is Australia's largest pure-play industrial property real estate investment trust (REIT).
Centuria is currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG), which has a price target of $4.16 on the business. That suggests the analysts believe there's still potential for a double-digit capital increase over the next 12 months.
On Macquarie's numbers, the ASX 200 dividend share is going to pay a distribution of 17.3 cents per unit in FY22 and 18.7 cents per unit in FY23. That translates into distribution yields of 4.6% and 5% respectively.
The aim of Centuria is to have a portfolio of high-quality industrial assets in key metro locations, underpinned by a quality and diverse tenant base.
It now has a portfolio of close to 80 properties worth more than $3.5 billion.
The fund manager Jesse Curtis said:
Centuria Industrial REIT continues to benefit from macro trends that increase demand for last mile industrial space within close proximity to large population catchments. Centuria Industrial REIT's industrial portfolio is skewed towards these infill markets where increased tenant demand and limited supply opportunities is driving upward pressure on market rents.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue is a large iron ore miner with multiple hubs in Western Australia, producing millions of tonnes of iron ore.
In the first quarter of FY22, its iron ore shipments amounted to 45.6 million tonnes, up 3% year on year.
The broker Macquarie currently rates Fortescue as a buy, with a price target of $21. That's a potential upside of more than 20% over the next 12 months, if the broker is right.
Macquarie thinks Fortescue could pay a dividend of $1.97 in FY22 and a dividend of $1.42 per share in FY23. This translates into grossed-up dividend yields of 16.5% and 11.9% respectively. The broker thought the quarterly update from the business was strong, aside from the lower iron ore price.
I've already mentioned the shipments from the quarterly update. Fortescue achieved a C1 cost of US$15.25 per wet metric (wmt), which was in line with the previous quarter. The business had net debt of US$175 million at 30 September 2021, which was after the US$4.7 billion payment of the FY21 final dividend and capital expenditure of US$744 million in the quarter.
Macquarie also notes the continuing development of Fortescue's green credentials. Recent announcements include a target to achieve net-zero scope 3 emissions by 2040. Fortescue Future Industries has recently announced the development of a green energy and green hydrogen manufacturing industry in Gladstone, Queensland.
Based on Macquarie's numbers, the Fortescue share price is valued at less than 10x FY23's estimated earnings.
