Reliable and ideally high-yield passive income is the primary goal of income investors, and ASX 200 shares deliver a respectable long-term average dividend yield of about 4%, plus some franking.
But in today's era of 5.75% savings rates, that just ain't good enough!
We need to pick some higher-yield ASX shares if we want to beat the no-risk return rate, not to mention stay ahead of inflation, which is currently 4.1% per annum (but falling).
We reviewed the 2024 consensus dividend forecasts for a variety of ASX shares on CommSec to uncover three high-yield options for your consideration.
Image source: Getty Images
3 high-yield ASX shares tipped to pay 7% dividends or more
Fortescue Ltd (ASX: FMG)
As published on CommSec, the consensus forecast annual dividend for this ASX 200 mining giant this year is $2.134 per share. This is higher than the 2023 dividend of $1.75 and the 2022 dividend of $2.07.
You can thank high iron ore prices for that!
Let's see how this translates for ASX income investors purchasing $10,000 worth of Fortescue shares. Based on the current price (at the time of writing) of $29.51, that buys 338 Fortescue shares for $9,974.38.
If we multiply 338 by $2.134, we get a total annual dividend of $721.29. The gross dividend, including 100% franking, equals $1,030.42.
That brings your total gross dividend yield to 10.33%, making this a considerably high-yield share in 2024.
That leaves the savings and inflation rates in the (Pilbara) dust!
Westpac Banking Corp (ASX: WBC)
The consensus forecast annual dividend for Westpac shares in 2024 is $1.424 per share. This is a tad higher than the 2023 dividend of $1.42 and the 2022 dividend of $1.25.
Now for our case study.
Our passive income investors purchase $10,000 worth of this ASX 200 bank share. They pay the current Westpac share price of $23.72, giving them 421 shares at a total cost of $9,986.12.
If we multiply 421 by $1.424, we get a total annual dividend of $599.50. The gross dividend, including the 100% franking, equals $856.43.
That's a total gross yield of 8.58%, meaning this high-yield share also beats today's savings and inflation rates.
Ampol Ltd (ASX: ALD)
The consensus forecast annual dividend for Ampol shares this year is $1.995 per share. This is down on the 2023 dividend of $2.50 but higher than the 2022 dividend of $1.61.
Investors who buy $10,000 worth of this ASX 200 energy share at the current price of $36.62 would end up with 273 Ampol shares. Total cost: $9,997.26.
If we multiply 273 by $1.995, we get a total annual dividend of $544.63. The gross dividend, including the 100% franking, equals $778.05.
That brings your total gross dividend yield to 7.78%.
Boom. Ampol is another high-yield dividend share that beats the savings and inflation rates of today.
