After passive income? Check out these ASX 200 dividend shares

ASX dividend shares can provide a reliable source of passive income

| More on:
A woman in hammock with headphones on enjoying life which symbolises passive income.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In a world where financial security is paramount, dividend shares can provide a reliable source of passive income. Dividend shares distribute a portion of company profits back to shareholders. This provides a regular income stream in addition to potential capital gains.

The S&P/ASX 200 Index (ASX: XJO) showcases some of the most robust dividend-paying companies. Here are four ASX 200 companies renowned for their consistent dividend payments.

Reliable mining dividends: Fortescue Metals Group Ltd (ASX: FMG)

Fortescue Metals, a giant in the iron ore industry, has long been a favourite for dividend seekers. Known for its high yield and strong cash flow, Fortescue has consistently paid handsome dividends, particularly during periods of high iron ore prices.

With the share price having declined in 2024, the mining company is now offering an attractive dividend yield of 8.32%.

Footwear and lifestyle: Accent Group Ltd (ASX: AX1)

Accent Group sells many of the most popular footwear brands in Australia. Despite the retail sector's volatility, Accent Group has shown resilience with a strategic approach to physical stores and online sales. Their progressive dividend policy is supported by a strong market presence.

With a dividend yield of 7.40%, it is an attractive pick for those looking to diversify into retail dividends.

Banking on dividend shares: Bank of Queensland Ltd (ASX: BOQ)

Bank of Queensland appeals to dividend seekers with its stable payout history and a strong presence in the regional banking sector. As a smaller player compared to Australia's big four banks, BOQ often offers higher yield percentages, catering well to risk-tolerant investors looking for substantial income flows.

With a current dividend yield of 6.65%, Bank of Queensland is well ahead of its larger competitors. 

Retail rewards: Super Retail Group Ltd (ASX: SUL)

Super Retail Group, the conglomerate behind well-known retail brands like Supercheap Auto, BCF, and Rebel, has capitalised on the consumer shift to domestic travel and home-centric activities. This shift has bolstered their financial performance, underpinning a robust dividend policy. For investors, this means potential for both capital appreciation and a steady dividend payout.

With a dividend yield of 6.72%, Super Retail Group provides a competitive potential dividend return. 

Benefits of dividend shares

Dividend shares can serve as a source of steady cash flow. This can be particularly valuable during economic downturns or market volatility because these payments provide financial stability independent of share price movements. Moreover, reinvesting dividends can significantly enhance an investment's growth potential over time through the power of compounding.

For those seeking passive income, these four ASX 200 companies offer promising dividends backed by solid business strategies and market positions. Whether you lean towards mining, banking, or retail, each provides a unique angle on dividend investing.

Motley Fool contributor Katherine O'Brien has no position in any of the stocks mentioned. 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 positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

a man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth that is place directly underneath him.
Dividend Investing

Are Fortescue shares a dividend trap?

Is the mining stock a dividend hero or is the big payout just temporary?

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Dividend deals: 2 top ASX shares that still look undervalued

Goldman Sachs thinks investors should buy these shares while they are cheap.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

An ASX dividend giant I'd buy over Westpac shares right now

I’d rather buy this stock for its long-term track record of dividend growth.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Dividend Investing

Brokers say these ASX dividend shares are top buys now

Analysts have good things to say about these income options.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Bank Shares

If I buy 1,000 CBA shares, how much passive income will I receive?

CBA's dividends might not be as lucrative as you'd think...

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these ASX shares and get 6% and 7% dividend yields

These shares offer larger-than-average dividend yields.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Broker says these ASX dividend shares are top buys

Morgans thinks income investors should be buying these shares. But why?

Read more »

A smiling woman puts fuel into her car at a petrol pump.
Dividend Investing

Want $150 in monthly passive income? Buy 656 shares of this ASX 200 stock

Just 656 shares in this ASX 200 dividend jewel can deliver a $150 monthly passive income.

Read more »