ASX dividend shares with yields over 10%? What could be better?
An ASX dividend share offering a 10% or greater yield on one's cash is a compelling proposition. We only found out this week that Australia's annual inflation rate is running at 6.9%. This technically means that if a dividend yield is under that threshold, the payments alone are not keeping your returns above breakeven.
So a 10% yielder is looking pretty good on that basis.
But finding high-yield ASX dividend shares is a bit of a risky business. There are plenty out there, to be sure. But if an ASX dividend share is offering a trailing yield above 10%, it's a sign that an investor might have to be wary. A company's trailing dividend yield reflects the past, not the future.
And if the share market lets a share trade with a trailing yield of more than 10%, it can often mean that many investors aren't expecting the dividends to continue at that level.
Otherwise, there would be more buyers, pushing the yield lower. So, always take a high dividend yield with a grain of salt.
But we digress. Here are 10 ASX dividend shares offering a dividend yield above 10% right now. The data comes from S&P Global Market Intelligence.
10 ASX shares with dividend yields over 10% today
Smartgroup Corporation Ltd (ASX: SIQ)
Smartgroup has paid out 66 cents per share in dividends over the past 12 months. That includes the March special dividend of 30 cents per share. This gives Smartgroup a trailing dividend yield of 12.6% right now.
Tabcorp Holdings Limited (ASX: TAH)
Gaming services provider Tabcorp has doled out payments worth a collective 13 cents per share this year. That gives Tabcorp a trailing yield of 12.42% at current pricing. But keep in mind that Tabcorp spun out Lottery Corporation Ltd (ASX: TLC) earlier this year, so this could affect Tabcorp's future dividend levels.
ASX coal share Yancoal is next up. This coal company has rained cash on its shareholders this year. It has doled out $1.03 in ordinary dividends per share, as well as a special dividend of 20.4 cents, for a total of $1.23 in dividends per share for 2022. That translates to a trailing dividend yield of 17.56% for just the ordinary dividends, and a whopping 21%, including the special dividend.
Magellan Financial Group Ltd (ASX: MFG)
ASX fund manager Magellan is another high-yielding share right now. This company has rolled out a total of $1.79 in dividends per share this year. At Magellan's current share price, that is worth a trailing yield of 18.34%
Latitude Group Holdings Ltd (ASX: LFS)
Financial services company Latitude is another relative newcomer to the ASX, having only listed in April last year. But it has certainly hit the ground running when it comes to dividend payments. Latitude has funded a total of 15.7 cents per share in dividends in 29022. That gives the ASX financial share a trailing yield of 11.89% right now.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue is one of the ASX's more well-known dividend payers these days. And over 2022, Fortescue did not disappoint in this regard. Investors have enjoyed a total of $2.07 in dividend payments per share this year. That gives Fortescue a trailing yield of 10.51% today.
Base Resources Ltd (ASX: BSE)
Mineral sands producer Base Resources is next. This company has given investors two dividends worth 3 cents per share each over 2022. On today's share price of 21 cents, that equates to a trailing yield of a whopping 28.57%
SPDR S&P/ASX 200 Resources ETF (ASX: OZR)
This exchange-traded fund (ETF) has had a top year when it comes to distribution payouts. This fund, as its name implies, holds a basket of ASX resources shares. So you can understand why it has been able to make its investors very happy in this regard. Investors have enjoyed payments worth a total of $2.08 per unit this year. That gives this ETF a trailing yield of 14.54% on today's pricing
Regal Investment Fund (ASX: RF1)
SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI)
Our final share to check out today is another ETF. As its name implies, this fund from SPDR focuses on holding a basket of high-yield dividend shares. It pays distributions quarterly, which, over the past 12 months, totals $4.29 per unit. On the current unit price of $27.95, that gives this ETF a trailing yield of 15.35%.