Looking to bag some handy passive income in 2024?
You're not alone!
Fortunately, as Aussie investors, our dominant stock market (the ASX) offers a number of quality dividend-paying stocks to run our slide rules over.
And unlike most international exchanges, like those in the United States, the dividend payouts often come with franking credits. This means investors can get credit for some or all of the 30% in corporate taxes that the ASX dividend shares have already paid to the ATO on their profits.
That means we can potentially hold onto more of that passive income ourselves.
Below we look at three S&P/ASX 200 Index (ASX: XJO) shares that I think will continue to be reliable, leading dividend payers in 2024.
But first…
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Don't lose sight of the basics
Investing in ASX 200 dividend shares for passive income requires much the same research and philosophy as investing for capital gains.
The only core difference here is that we're hunting for stocks with a relatively high yield, so we can bank our slice of the profits the companies we've invested in are earning.
While we'll look at three ASX 200 dividend stocks that I believe will offer market-beating yields in 2024, a properly diversified passive income portfolio will contain more than just three stocks.
There's no magic number. But 10 is a reasonable ballpark, ideally operating in different sectors across various regions.
Also, keep in mind that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.
With that said…
Three ASX 200 dividend stocks for $1,540 of passive income in 2024
First up, we have ASX 200 bank stock Australia and New Zealand Banking Group Ltd (ASX: ANZ).
ANZ has made two annual dividend payments every year for more than 10 years. And the bank's FY 2023 passive income payout of $1.75 per share was up 20% from the prior year, spurred in part by record-high cash earnings of $7.4 billion.
At the recent share price of $25.54, ANZ shares trade on a trailing yield of 6.9%, franked at 76%.
The second ASX 200 share I believe will offer passive income seekers some strong returns in 2024 is BHP Group Ltd (ASX: BHP).
The mining giant has enjoyed a surging iron price over the past few months, with the industrial metal topping US$142 per tonne. That should bode well for the 2024 dividend outlook.
At the recent share price of $49.58, BHP shares trade on a fully franked trailing yield of 5.3%.
Which brings us to ASX 200 oil and gas stock Woodside Energy Group Ltd (ASX: WDS).
Oil and gas prices have come off the boil over the past few months, but going by consensus estimates, we're likely at or near the bottom of that price cycle. Which could make Woodside shares a strong passive income play at the recent share price of $31.57.
At that price, Woodside shares trade on a fully franked trailing yield of 10.8%.
Now, if I were to split a $20,000 investment evenly between these three ASX dividend stocks, I could earn an average yield of 7.7%. And, of course, I'll be hoping to see their share prices rise during the year as well.
That would equate to an annual passive income of $1,540.
Happy New Year!
