As some popular ASX shares flirt with record highs this year and the S&P/ASX 200 Index (ASX: XJO) surges north of 9%, digging up reliable dividend stocks for their appealing yields right now is like trying to find a Democrat in Wyoming.
They are scarce!
And just like navigating political promises, the road is rocky, so you need to know how to avoid the traps and mind the bears!
To help you steer clear of the pitfalls (and hopefully strike paydirt), we asked our Foolish writers to reveal the best high-yielding ASX dividend shares they consider a buy this month.
Here is what the team has uncovered:
Top high-yielding ASX dividend shares for November 2024 (smallest to largest)
- Plato Income Maximiser Ltd (ASX: PL8), $928.26 million
- IPH Ltd (ASX: IPH), $1.48 billion
- Graincorp Ltd (ASX: GNC), $2.05 billion
- Super Retail Group Ltd (ASX: SUL), $3.32 billion
- GQG Partners Inc (ASX: GQG), $8.24 billion
(Market capitalisations as of market close 8 November 2024)
Why our Fool writers love these passive-income ASX stocks
Plato Income Maximiser Ltd
What it does: Plato Income Maximiser is a listed investment company (LIC) that specialises in providing large, fully-franked dividends on a monthly basis.
By Sebastian Bowen: With the ASX still hovering close to all-time highs, it has become harder to find dividend shares with yields over 5% right now. But my pick of this diminishing pool is Plato Income Maximiser.
As I mentioned above, this LIC's primary goal is to provide its investors with a chunky stream of monthly dividend income, which tends to come fully franked as well.
Plato is able to do this by holding an underlying portfolio of top dividend shares, from which it harvests income to pass onto its investors. At the most recent update, these shares included Aristocrat Leisure Ltd (ASX: ALL), Woodside Energy Group Ltd (ASX: WDS) and Medibank Private Ltd (ASX: MPL).
Over the past 12 months, this LIC has doled out a total of 6.6 cents per share in monthly dividends. At Friday's closing price of $1.245, this gives Plato a dividend yield of roughly 5.3%. With all this in mind, Plato Income Maximiser is my pick of the bunch for a 5%-yielding passive income share this November.
Motley Fool contributor Sebastian Bowen owns shares of Plato Income Maximiser Ltd.
IPH Ltd
What it does: IPH is an international intellectual property (IP) services group. It owns a network of member firms working throughout 10 IP jurisdictions, with clients in more than 25 countries. The company highlights that its firms have been an integral part of the Asia Pacific's IP sector for more than 130 years.
By James Mickleboro: I think IPH is one of the most underappreciated ASX dividend shares on the local market. Thanks to its defensive earnings, it has been able to increase its dividend like clockwork every year for the past decade. That even includes during the COVID-19 pandemic when many listed companies suspended their dividend payments.
But if you thought this run was coming to an end soon, think again! Goldman Sachs, which has a buy rating and a $7.50 price target on IPH shares, expects increases through to at least FY 2027.
The broker has pencilled in fully franked dividends per share of 36 cents in FY 2025, 39 cents in FY 2026, and then 41 cents in FY 2027. Based on the IPH share price of $5.38 at Friday's close, this will mean dividend yields of 6.7%, 7.2%, and 7.6%, respectively.
Motley Fool contributor James Mickleboro does not own shares of IPH Ltd.
Graincorp Ltd
What it does: Graincorp is an agribusiness and processing company that operates the largest grain storage and logistics network in eastern Australia. The company also provides grain marketing services.
By Bernd Struben: Only a few quality ASX 200 stocks pay fully franked dividend yields north of 5%.
Drilling down to my top November pick, Graincorp paid out 54 cents a share in dividends over the past 12 months. At the recent closing price of $9.15, that sees this ASX dividend stock trading on a fully franked trailing yield of 5.9%.
Pleasingly, management maintained the latest interim dividend despite a hit to half-year profits amid difficult global grain market conditions over the six-month period.
But the year ahead is looking brighter for the company. With climatologists forecasting auspicious agricultural weather conditions, Graincorp stands to benefit from the potential of some bumper harvests. That, in turn, should support its FY 2025 dividends.
Atop the passive income potential, the Graincorp share price has soared 25.5% year to date.
Motley Fool contributor Bernd Struben does not own shares of Graincorp Ltd.
Super Retail Group Ltd
What it does: Super Retail is the proud owner of established brands Supercheap Auto, Rebel, BCF, and Macpac. It books sales and income from its network which is dotted throughout the nation.
By Zach Bristow: The Australian retail sector is currently in a slump, with Aussie savers peeling back spending on consumer items such as cars, sports, and outdoor leisure.
Super Retail Group's stock price has reflected this pessimism, down 18.3% in the past month. The stock now trades at 17 times earnings, giving a chance to own a passive interest in some of Australia's most successful brands at a discount to previous history.
Super Retail's operating businesses each possess consumer advantages in their categories. I believe people would 'walk across the road' to attend Rebel or BCF rather than a lesser-known competitor, for instance. The cash flows produced by these businesses are then passed through to Super Retail Group's shareholders as earnings and dividends.
Goldman Sachs estimates the company's FY25 dividends at 73 cents, meaning the stock trades on a forward yield of 5% at the time of writing and above 5%, including all franking credits.
The broker rates Super Retail Group a buy with a $15.87 per share price target
Motley Fool contributor Zach Bristow does not own shares of Super Retail Group Ltd.
GQG Partners Inc
What it does: GQG is an ASX-listed fund manager with its headquarters based in the US. One of its key investment individuals is chair and chief investment officer Rajiv Jain.
By Tristan Harrison: GQG's main investment strategies are across international shares, global shares, emerging market shares, and US shares. Pleasingly, each of its funds has outperformed its benchmark since inception, providing a good organic boost for funds under management (FUM) and also helping attract new inflows.
As of 30 September 2024, the business had US$161.6 billion of FUM. Impressively, in 2024 to date, it has experienced net inflows of US$17.4 billion. In just the three months to 30 September 2024, it saw net inflows of US$6.2 billion. The growth of FUM is a direct driver of revenue and profit for GQG.
GQG is committed to a dividend payout ratio of 90% of distributable profit, which is a generous dividend in my book. According to Commsec forecasts, the business is projected to pay a dividend yield of 8.3% in FY25.
While future growth isn't guaranteed, the company continues to grow FUM at an impressive rate and this could lead to further profit and dividend growth, leading to larger shareholder payments in the coming year.
Motley Fool contributor Tristan Harrison does not own shares of GQG Partners Inc.
