There are many dividend-paying passive income shares on the ASX 200 that offer investors high yields.
We all like a big dividend yield and the upfront passive income it can provide.
But just buying the highest-yielding shares on the market often isn't the slam dunk move that some investors might assume it will be. The market is very good at pricing its shares on an effective risk-reward spectrum. As such, the passive income shares that have the highest dividend yields often also have the most risk attached to them.
Otherwise, more investors would flock to the company in question, bidding up its share price and lowering its dividend yield. When this isn't happening, it's always worth taking a second or even third look and asking yourself what everyone else is missing.
With all that in mind, let's assess the highest-yielding passive income shares on the market today and determine which, if any, would be worth buying today for those dividends.
The highest-yielding ASX 200 shares on the ASX today
Here is a look at ten of the highest-yielding ASX dividend shares currently available to ASX 200 investors:
| ASX 200 dividend share |
Current dividend yield* |
| Fortescue Ltd (ASX: FMG) | 9.65% |
| Platinum Asset Management Ltd (ASX: PTM) | 8.30% |
| Woodside Energy Group Ltd (ASX: WDS) | 7.77% |
| New Hope Corporation Ltd (ASX: NHC) | 7.64% |
| APA Group (ASX: APA) | 7.34% |
| Deterra Royalties Ltd (ASX: DRR) | 7.31% |
| Helia Group Ltd (ASX: HLI) | 7.11% |
| Nine Entertainment Group Holdings Ltd (ASX: NEC) | 6.91% |
| Inghams Group Ltd (ASX: ING) | 6.84% |
| Ampol Ltd (ASX: ALD) | 6.28% |
*Dividend yield at the time of writing
So those are ten of the highest-yielding passive income shares on the ASX 200 Index right now. All of these stocks are evidently offering dividend yields of over 6% and some close to 10%. But which one (or ones) would I buy for dividend income today?
Which of these passive income shares is a buy right now?
Well, I don't find any of these passive income shares particularly appealing right now, which is why none of these names currently appear in my personal investing portfolio.
You'll notice that many of these names, including Deterra Roytalties, Fortescue, Woodside, New Hope and Ampol, are mining, energy or commodity stocks.
These companies are inherently cyclical and, thus, tend to have inconsistent dividends over time. I'd be surprised if most of these shares pay out the same level of passive income over the coming 12 months as they did over the past 12 months.
As such, if I had to choose two of these high-yielding passive income shares today, I would go with either APA Group or Nine Entertainment.
APA is a gas pipeline owner with a great history of maintaining its dividend payouts. APA's long-term business model might come under threat if gas use falls or is eventually phased out, but I don't see this happening anytime soon. Thus, I would regard APA's 7%-plus yield as a great source of dividend income today.
Nine is the media conglomerate most of us are at least aware of. The company owns its flagship television stations, of course. But Nine also has successful operations in radio, print, and online news, thanks to its acquisition of Fairfax a few years ago.
All media companies still face challenges and disruption in this competitive space. But I think Nine has made some savvy moves in recent years (particularly its Stan streaming platform), setting itself up for future growth. That's why Nine, along with APA, are my picks out of these passive income shares today.
