S&P/ASX 200 Index (ASX: XJO) mining shares, by and large, have seen their revenues soar alongside the prices of their commodities.
While some commodities, like iron ore, have retraced from all-time highs posted mid-last year, most, including iron ore, remain well above their historic levels.
Atop offering a welcome tailwind for their share prices, the leading ASX 200 mining shares have also returned record amounts of money to shareholders in the form of dividends.
So, which of the miners offers the best yield this month?
A word on dividend yields
Before we get to the big reveal, it's important to note that we're discussing trailing dividend yields here. That's the metric you'll most commonly see quoted, rather than a forward dividend yield, which relies on forecast earnings.
A trailing yield is, by definition, backwards-looking. It reveals the yield you would have gotten if you'd owned a company (in this case ASX 200 mining shares) before the ex-dividend date for all of the past year's dividend payouts. And it calculates this using the current share price.
That means when a company's share price falls, its trailing dividend yield rises. Conversely, if its share price rises, its trailing dividend yield falls.
Also, bear in mind that high dividend payouts are not necessarily sustainable. If any of the three ASX 200 mining shares listed below sees its revenues decline, the dividend payout will likely fall as well.
With that said…
Which ASX 200 mining share pays the highest yield right now?
Flush with cash, our top three dividend payers will be familiar names to you.
Coming in at number three is Rio Tinto Ltd (ASX: RIO). The miner pays a 10.3% dividend yield, fully franked. The Rio Tinto share price is up 4.3% year-to-date.
Up next is the world's second-largest miner, BHP Group Ltd (ASX: BHP). BHP pays a 10.5% dividend yield, fully franked. The BHP share price is up 6.9% so far in 2022.
Which brings us to the ASX 200 mining share with the highest dividend yield at this time, Fortescue Metals Group Ltd (ASX: FMG). Fortescue pays a whopping 15.3% dividend yield, also fully franked. The Fortescue share price is down 3.9% year-to-date.
Happy income investing!
