5 ASX dividend shares with the highest yields in FY22

What were the highest-yielding ASX dividend shares from FY2022?

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Key points

  • FY2022 was not a kind year to ASX shares 
  • But it has spat out some monstrous trailing dividend yields 
  • So let's take a look at the highest-yielding dividend shares from FY2022 

Now that the 2022 financial year has drawn to a close, it’s a great time to look back and assess the state of the ASX share market as we embark on FY2023. So today, let’s check out the ASX dividend shares that had the highest yields on offer over FY2022.

Remember, a trailing dividend yield represents what the company has paid over the past 12 months, not what investors can expect going forward. So do not get too carried away seeing some of these dividend yields over 12% – many will not be delivering such a yield in FY2023.

The 5 ASX dividend shares with the highest FY22 yields

Our first ASX dividend share to check out is BHP Group Ltd (ASX: BHP). BHP has always been known as a strong dividend payer. But FY2022 saw the Big Australian pay out the highest level of raw dividend payments in its history.

The mining giant forked out a whopping $4.80 in fully franked dividends per share. That gives BHP shares a trailing yield of 12.58% today.

Our next share to take a look at is asset manager Platinum Asset Management Ltd (ASX: PTM). Over FY2022, Platinum funded a total of 22 cents per share in fully franked dividends. That wasn’t the biggest payout investors have gotten from Platinum.

The fund manager forked out 47 cents per share in 2015, for example. However, Platinum shares have plunged by 62.85% over the past 12 months. This has resulted in the company’s trailing yield shooting up to 12.68% on current pricing, making it one of FY2022’s highest-yielding shares.

On paper, Tabcorp Holdings Limited (ASX: TAH) also looks like a dividend winner. Its FY2022 total of 13.5 cents per share, fully franked, was a reduction on the previous year’s 14.5 cents per share.

But on the current Tabcorp share price, that still gives us a trailing yield of 12.83%. However, this doesn’t reflect the spinoff of Lottery Corporation Ltd (ASX: TLC) that was completed back in May.

Now that this substantial chunk of Tabcorp’s business is on its own, it’s very unlikely that the company can continue to fund its dividends to the same watermark.

From a 12% to an 18% yield?

Another miner in Fortescue Metals Group Limited (ASX: FMG) is FY2022’s penultimate ASX dividend share winner. Like BHP, the last financial year saw Fortescue shower shareholders with unprecedented amounts of cash. Its FY2022 total came to $2.97 per share, fully franked.

That was again a big increase on FY2021’s total of $2.47. That’s enough to give Fortescue shares a trailing dividend yield of 17.66%. Like BHP, Fortescue’s ability to keep paying those kinds of dividends will be determined by what the price of iron ore does over FY2023.

Our final and highest-yielding ASX dividend share of FY2022 is none other than Magellan Financial Group Ltd (ASX: MFG). Unfortunately for shareholders, this is another case where a falling-like-a-stone share price has largely pushed up the company’s trailing dividend yield.

Magellan shares are now down almost 75% over the past 12 months. This has meant that Magellan’s last two dividend payments, which came to a total of $2.24 per share (franked at 75%), give Magellan a monstrous trailing yield of 18.57% on current pricing.

Yes, Magellan has also just paid out the biggest dividend in its history for FY2022. However, the company has been suffering through an extremely difficult period of late. We won’t get into that too much here.

But the precipitous fall in Magellan’s funds under management from $116.4 billion in November 2021 to $65 billion by 31 May 2022 is likely to be a handbrake on the company’s ability to maintain those kinds of payments into FY2023.

So those are our five highest-yielding shares of FY2022 as it currently stands. Remember, many of these shares could well be dividend traps going forward. So don’t get too carried away with what looks like an unbeatable dividend yield.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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