Investing in ASX shares for dividend income?
You've come to the right exchange.
Not only do many leading ASX companies regularly share their profits with investors in the form of dividends, but many of these payouts also come with franking credits. That means you may be able to hold onto more of that passive income come tax time.
Now, here's what you could be earning from a $10,000 investment today in these two leading S&P/ASX 200 Index (ASX: XJO) income shares.
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An important note on dividend yields
Before diving into the nitty-gritty, take note that the dividend yields you normally see quoted (and the ones we look at below) are trailing yields. These are backwards looking by definition, derived from the past 12 months of dividend payouts.
The passive income delivered by ASX shares in the future may be higher or lower than over the past year. This will depend on a range of company-specific, geopolitical, and macroeconomic factors.
With that said…
Two high-yielding ASX income shares
One company I'd target for passive income is ASX 200 oil and gas share Woodside Energy Group Ltd (ASX: WDS).
With oil and gas prices soaring in 2022, Woodside shares delivered an all-time high interim dividend of $1.60 per share on 6 October. The stock also paid out a record-high final dividend of $2.15 per share. That hit eligible shareholders' bank accounts on 5 April.
That equates to a full-year passive income payout of $3.75 per share, fully franked.
At yesterday's closing price of $33.96, Woodside trades on a trailing yield of 11.1%.
Which brings us to our second high-yielding company, ASX 200 coal stock New Hope Corp Ltd (ASX: NHC).
As with Woodside, New Hope shareholders benefited from spiralling energy prices in 2022, which saw thermal coal hit all-time highs.
Also like Woodside, management of this ASX income share declared both an all-time high interim dividend and an all-time high final dividend, fully franked.
New Hope's interim dividend of 40 cents per share landed in investors' bank accounts on 3 May. Shareholders will have received the final dividend of 56 cents per share on 8 November.
That's 96 cents per share of passive income from this ASX dividend stock.
That works out to a full-year payout of 96 cents per share. The New Hope share price closed yesterday at $4.76. That gives the ASX 200 coal miner a trailing yield of 20.1%.
What income could you earn from $10,000 invested in these ASX shares today?
If you split your $10,000 investment evenly between Woodside shares and New Hope shares, you'd be earning a trailing yield of 15.5%.
If both ASX shares declare the same dividends in the year ahead, that would see you earning $1,550 of annual passive income from today's investment.
