Which major ASX energy share will pay the best dividend yield in FY24?

And are ASX energy shares usurping mining and banking stocks when it comes to dividends?

Man holding Australian dollar notes, symbolising dividends.

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ASX energy shares have been hot stocks for a couple of years now, with several tailwinds driving share price growth, profit growth and higher dividends.

This has been a welcome change for income investors, who have traditionally had to rely predominantly on ASX mining shares and ASX bank shares to deliver the best passive income.

So, which major ASX energy share is set to pay the highest ASX dividend in FY24?

Which ASX energy share will pay the most in FY24?

For the purposes of this article, we're looking at major ASX energy shares only.

We're defining 'major' energy stocks as those with market caps above $2 billion.

That means they're either mid-caps ($2 billion to $10 billion) or large-caps ($10 billion and above).

There are 9 ASX energy shares that fit this criteria.

However, we've excluded the smallest one — ASX uranium share Paladin Energy Ltd (ASX: PDN) — because it doesn't currently pay dividends.

Here are the ASX dividend consensus forecasts as published on CommSec today.

ASX dividends: What the big energy producers will pay in FY24

ASX energy shareDividend yieldForecast
Yancoal Australia Ltd (ASX: YAL) 21.2%105 cents
New Hope Corporation Ltd (ASX: NHC) 11.4%60 cents
Woodside Energy Group Ltd (ASX: WDS) 10.2%320 cents
Viva Energy Group Ltd (ASX: VEA) 8.4% 26 cents
Santos Ltd (ASX: STO) 6.9% 48 cents
Ampol Ltd (ASX: ALD) 5.4%186 cents
Whitehaven Coal Ltd (ASX: WHC) 3% 22 cents
Beach Energy Ltd (ASX: BPT) 2.7% 4 cents
Dividend yields on these ASX energy shares have been calculated based on their share prices & the US currency exchange rate at the time of writing

Yancoal shares to pay the most

That 21% dividend yield is standing out like a sore thumb.

There's got to be a catch, right?

My colleague Tony examined this in an article last month.

He points out that Yancoal has an inconsistent history on ASX dividends and he reckons that may be the catch.

In 2023, the ASX coal share paid a $1.07 annual dividend.

In 2022, Yancoal shares paid an annual dividend of $1.23.

The stock paid no dividend at all in 2021 and a single dividend of 21.2 cents in 2020. In 2019, it paid an annual dividend of 38.9 cents. In 2018, it paid a single dividend of 3 cents.

Are ASX energy shares usurping mining and banking on dividends?

We recently pitted ASX mining shares against ASX bank stocks to see which would pay the better dividends in FY24 based on forecasts published on CommSec.

Of the 14 mining and banking stocks we canvassed, only one of them paid a dividend yield higher than the top five ASX energy shares above.

Food for thought.

Motley Fool contributor Bronwyn Allen has positions in Commonwealth Bank Of Australia and Woodside Energy Group. 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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