This year is shaping up to be a successful one for ASX dividend shares. Patient passive income investors are reaping the rewards of holding less 'growth-oriented' names.
We know each year in the stock market can be full of twists and turns. This year the prevailing thematic is rising interest rates caused by stubborn inflation. Consequently, the once unloved income-generating corner of the market is now getting much more attention as investors hunt down proven business models that are already producing returns.
In light of this, we are taking a look at the five top-performing dividend shares inside the All Ordinaries Index (ASX: XAO) devouring the market this year.
ASX dividend shares racking up capital growth
New Hope Corporation Limited (ASX: NHC)
Breaking the ice in our countdown of top performers is coal miner, New Hope. This company has swung from declining revenues and unprofitably to significant growth and bountiful cash flows amid an energy crisis.
Shareholders are swimming in returns thanks to the coal price rampantly running higher this year. At the start of 2022, the coal price was hovering around US$170 per tonne. Since then, it has skyrocketed by around 136% to around US$400 — with most of those higher prices going straight to the company's bottom line.
Additionally, the extra cash means New Hope has been able to pay out more in dividends to shareholders. Currently, the company trades on a dividend yield of 9.4%. Shares in New Hope are 67.3% higher so far this year.
Grange Resources Limited (ASX: GRR)
The next top-performing ASX dividend share hitting our list is another commodity company. Grange Resources is an iron ore producer rallying on strong commodity demand.
In February, Grange released its full-year financial results outlining an incredible 58% increase in earnings. Collecting $321.6 million in net profits put the company in good stead to splurge on dividends paid out to shareholders.
At 12 cents per share for the trailing 12-month period, Grange Resources is presenting a dividend yield of 9.84%. On top of this, the share price has appreciated by 67.5% since this year kicked off.
Coronado Global Resources Inc (ASX: CRN)
Coronado is an ASX share that has had such a good year it decided to announce a special dividend. The metallurgical coal mining company with operations across Australia and the United States has benefitted from the aforementioned rising prices in the energy-dense commodity.
Shareholders were celebrating last month when Coronado posted the best quarterly revenue it has had in its existence. The stellar result allowed the company to initiate the payment of dividends to its investors.
This ASX dividend share is trading on a yield of 5.26% once the special dividend is factored in. Most impressively, the share price has returned 75.8% so far this year.
Whitehaven Coal Ltd (ASX: WHC)
If there's one thing coal companies haven't been burning this year, it is cash — that's right, yet another coal producer landing in the top-performing ASX dividend shares list.
Much like its peers, Whitehaven Coal went from a cash losing operation to posting its biggest half-year net profit in the space of a year. The company achieved net profit after tax (NPAT) of $340.5 million on $1,443 million of revenue — an earnings margin of 24%.
Investors are relishing the attractive 3.1% yield being offered by Whitehaven. However, the 88.1% share price gain since the start of the year steals the show.
Yancoal Australia Ltd (ASX: YAL)
If you have stuck with us, you have probably noticed a common theme for which ASX dividend shares are enjoying a strong tailwind. Yes, believe it or not, four out of the five top-performing companies are coal producers.
I think you know the drill by this point. Yancoal's bottom line has been boosted by booming coal prices this year. Those shareholders lucky enough to have it in their portfolio before 2022 have captured a 114.2% gain.
At the time of writing, this ASX dividend share is offering an attractive 8.9% yield.
