It's quite obvious that the top stocks on the S&P/ASX 200 Index (ASX: XJO) don't quite pack the same punch as they did a few years ago when it comes to dividend yields.
The past two years have been lucrative for many ASX 200 shares.
Stocks like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and Coles Group Ltd (ASX: COL) have soared to unprecedented heights in 2025. Others, such as National Australia Bank Ltd (ASX: NAB), Telstra Group Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC), have hit multi-year highs.
Whilst this has been great for existing shareholders, it has also had the less desirable effect of lowering the dividend yields available on these ASX 200 shares for new investors.
To illustrate, a few years ago, it would have been unthinkable for CBA to trade on a dividend yield of 2.68%. But that's where we are today.
But there are still stocks on the ASX 200 that trade with what look like very generous dividend yields. New Hope Corporation Ltd (ASX: NHC) is at the top of that list.
New Hope Corporation is an ASX energy share that specialises in mining thermal coal.
It has emerged as a major dividend payer of the ASX 200 in recent years.
Over the past 12 months, New Hope shareholders have been treated to two fully franked dividend payments. The first was the final dividend of 22 cents per share that was doled out last October. The second was the interim dividend from April, which was worth 19 cents per share.
At the current New Hope share price of $4.06, these two payments give this ASX 200 share a whopping trailing dividend yield of 10.1%.
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Is this ASX 200 stock's 10.1% dividend yield for real?
Obviously, a 10.1% dividend yield sounds like a no-brainer investment. After all, who wouldn't want to get more than $100 back in cash every year (plus franking) for every $1,000 invested?
However, I would caution investors who might want to rush out and buy New Hope shares today with an expectation of receiving income like that.
Remember, a trailing dividend yield always reflects the past and is not a guide to what you can expect in the present or future.
No ASX 200 stock (nor any stock) is obligated to maintain or increase its dividends from year to year. And mining and energy shares are some of the ASX's most unreliable dividend payers. That's because their profitability, and thus dividend-paying ability, is highly reliant on what global commodity prices are doing.
Over the past few years, New Hope has established itself as a big dividend payer. But this was only possible thanks to the spike in energy prices following the end of the pandemic, and then the 2022 Russian invasion of Ukraine.
Ever since 2022, energy prices (including coal) have been steadily dropping.
Beware of big dividend yields from certain stocks
We can see this reflected in New Hope's dividends. In 2022, the company forked out 86 cents per share in payouts. But this dropped to 70 cents in 2023 and then to 39 cents in 2024. This has corresponded with a 45% share price slide for New Hope between October 2022 and today.
I, nor anybody else, knows what New Hope's next few dividends will look like. But there's every chance they will be lower than the ones shareholders have bagged over the past 12 months. So tread carefully buying this ASX 200 share today for dividend income. You might find that 10.1% yield doesn't quite measure up.
