Offering an 18%, fully franked trailing yield, it's somewhat hard for me to believe that this star ASX dividend share is down 13% since last March.
The passive income gem in question is ASX coal stock Yancoal Australia Ltd (ASX: YAL).
Much, if not all, of that share price retrace was driven by a sizeable fall in coal prices.
In April 2023, thermal coal was fetching around US$200 per tonne. That's fallen to around US$120 per tonne today.
This saw the Yancoal share price drop from $6.86 a share on 13 March to its closing price yesterday of $5.97 a share.
But, judging by the miner's December quarterly update, the 2024 passive income outlook from this shining ASX dividend share looks very solid to me.
The company reported achieving almost 13 million tonnes of saleable coal production over the three months. That's its best production level in three years.
Management noted that output from Yancoal's mines improved for the fourth consecutive quarter amid ongoing recovery initiatives across the miner's operations.
Yancoal also reported that coal prices remain at levels that allow it to "generate robust cashflow".
Indeed, you'll be hard-pressed to find an ASX dividend share of a similar size with such a strong balance sheet.
As at 31 December, Yancoal had a cash balance of $1.4 billion. In the December quarter alone, the coal miner added $477 million to its cash balance. And that's after incorporating operating costs, capital expenditure and monthly tax payments.
So, while there are no guarantees in life or in the world of investing, I'd say the passive income outlook from this dividend gem remains quite strong.
As for the past year…
How much passive income has this ASX dividend share been paying?
The smashing yield we quoted above is, as noted, a trailing yield. This is based on the dividends the ASX dividend share paid out over the past 12 months.
Yancoal paid a final dividend of 70 cents per share on 28 April. Eligible investors will have seen the interim dividend of 37 cents per share hit their bank account on 20 September.
That equates to $1.07 per share of passive income, with potential tax benefits from those franking credits.
At yesterday's price of $5.97 a share, that sees this star ASX dividend share trading on a 17.9% yield.
Take note, though. While the Yancoal share price is down 13% since last March, the ASX coal stock has already rebounded 16% over the past month.
