2 ASX coal shares with dividend yields over 20%: Are they for real?

We take a look at the dividend yield paid by two coal shares.

Key points
  • These two ASX coal shares pay a dividend yield of more than 20% 
  • Shares in both these companies have declined in the past year 
  • The coal price can impact the share price and dividend yield of coal explorers 

Investing in shares with a big dividend yield can be a decent way of earning extra monthly income.

Two ASX coal shares with high dividend yields at the current time are Coronado Global Resources Inc (ASX: CRN) and Yancoal Australia Ltd (ASX: YAL).

Let's take a look at the dividend yields paid by these ASX coal shares in more detail.

Coronado Global Resources

Firstly, the dividend yields we are looking at here take into account the total dividends paid by the company in the last twelve months.

Secondly, its worth noting the dividend yield can be artificially higher when a company's share price has fallen.

Coronado Resources has paid a trailing dividend yield of around 23% in the past year, based on the latest share price.

The Coronado share price has fallen 36% in the past year and last closed at $1.465.

Yancoal Australia

ASX coal share Yancoal pays a dividend yield of nearly 23% based on the company's last closing price of $5.34.

This consists of a final dividend of 70 cents per share paid in April this year and an interim dividend of 52.71 cents paid in September last year.

Yancoal shares have slipped 6.97% in the last year.

Now, it's worth noting that ASX 200 coal shares could trade at higher or lower yields in the future.

One factor that could impact the dividend yield and share price of ASX coal shares including Yancoal going forward is the coal price.

The Federal Government is tipping thermal coal to hit US$313 per tonne in FY23, up from US$245 a tonne in FY22.

Meanwhile, the government forecasts metallurgical coal to reach US$296 per tonne in FY23, less than US$387 a tonne in FY22.

Motley Fool contributor Monica O'Shea 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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