ASX mining shares are among the biggest dividend payers in the market.
Income investors love 'em.
The big Australian mining companies are well-established, mature businesses that churn out great profits year after year. That's why they are seen as reliable dividend payers.
But things really get exciting when commodity prices are elevated, because that can substantially bump up the passive income for investors.
The crucial commodity is iron ore.
The iron ore price has traded in a volatile but upward trajectory since May 2023. In that time, it has ripped from about US$98 per tonne in May to more than US$130 per tonne today.
We'll see the benefits of that material commodity price lift in the major miners' reports this earnings season.
When will the big three miners report their earnings?
The three biggest ASX mining shares on the market today are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Ltd (ASX: FMG).
BHP is due to report its 1H FY24 results on 20 February.
Rio Tinto will release its FY23 full-year results on 21 February.
Fortescue will inform the market of its half-year results on 22 February.
And all three will announce their next dividend payments alongside their results.
So, which major ASX mining share will pay the most in 2024?
Let's take a look at the current forecasts from the experts.
Which major ASX mining share will pay more?
In 2023, BHP shares paid $2.6143 in annual dividends, fully franked.
The consensus forecast published on CommSec today is for BHP shares to pay an annual dividend of $2.399 in 2024. Based on the current BHP share price of $45.82, this equates to a dividend yield of 5.24%.
In 2023, Rio Tinto shares paid $5.8738 in annual dividends, fully franked.
The consensus forecast is for Rio Tinto shares to pay an annual dividend of $7.689 in 2024. Based on the current Rio Tinto share price of $128.25, this equates to a yield of 6%.
In 2023, Fortescue shares paid $1.75 in annual dividends, plus full franking credits.
The consensus forecast is for Fortescue shares to pay an annual dividend of $2.132 in 2024. Based on the current Fortescue share price of $28.18, this would be a yield of 7.57%.
So, there you have it.
In yield terms, Fortescue shares will pay more than BHP and Rio Tinto in 2024.
In dollar terms, Rio Tinto shares will pay more.
