If you are looking for ASX dividend shares that offer both capital appreciation and steady dividends, then this recap is a good place to start.
There is something magical about ASX shares that provide both dividends and capital appreciation. One without the other can still deliver great returns, but the power of compounding is in full force when the two are put together.
However, it can be hit and miss when scouting out companies that can consistently deliver on both avenues of wealth creation. Today, we are taking a look at the best performing ASX dividends shares in terms of share price performance so far this year.
High-yielding dividend shares delivering this year
New Hope Corporation Limited (ASX: NHC)
Making an appearance in the top three best performing ASX dividend shares so far this year is Australian coal producer, New Hope. The company easily beats out its next closest competition, Woodside Energy Group Ltd (ASX: WDS), by 28% — rising by 78% so far in 2022.
The stellar performance of this $3.3 billion coal mining company has coincided with a sizeable 147% lift in the fossil fuel commodity price. As a result, the trailing 12 months ending 31 January 2022 witnessed record revenues of $1.67 billion.
Currently, the company trades on a dividend yield of 6.2%, above the industry average of 4.6%.
Yancoal Australia Ltd (ASX: YAL)
Unfortunately for the ESG investors out there, the second-best performing ASX dividend share so far this year is another coal producer. Sporting a market capitalisation more than twice that of New Hope’s, Yancoal has captured the support of investors looking to cash in on the global energy crisis.
The Yancoal share price has skyrocketed 109% since the start of the year. For context, the S&P/ASX 200 Index (ASX: XJO) is 5% weaker than where it was before 2022.
A bounce back in profits has enabled juicier dividends from Yancoal over the past year. At present, the company is displaying a dividend yield of 9.2%.
Grange Resources Limited (ASX: GRR)
Finally, the ultimate best performing ASX dividend share of 2022 so far is none other than Grange Resources. While it may be relatively small compared to its iron ore producing peers, such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), it hasn’t skimped out on returns.
The Grange Resources share price is up an astonishing 121% since the year began. Notably, the price of iron ore has had a less impressive run than coal, gaining 24% in the first five months of the year. Yet, that hasn’t stifled the excitement for this ASX dividend share.
Currently, Grange Resouces trades on a dividend yield of 7.1%.