2 ASX 200 dividend shares with double the current index yield

These shares provide a great passive income for investors.

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Key points

  • The ASX 200 Index offers a 3.4% dividend yield, surpassing the S&P 500 and FTSE 100, with standout stocks providing even higher yields.
  • Woodside Petroleum, now Australia's largest energy company, delivered a 6.9% dividend yield, driven by strategic partnerships and recovered share prices.
  • Abacus Group, a diversified property company, offers a 7% dividend yield, with consistent payouts and expected future distributions maintaining investor returns.

The trailing 12-month dividend yield for the S&P/ASX 200 Index (ASX: XJO) is around 3.4%. It's lower than the historical long-run average dividend yield of 4% to 4.5%, but it's still a solid return by global standards.

Take the S&P 500 Index (SP: .INX) in the US, for example. In October, the S&P 500 Index recorded the lowest dividend yield for two decades, at around 1.16%. Meanwhile, in the UK, the FTSE 100 Index (FTSE: UKX) has a yield of around 3.15%.

Despite the current low rate, the ASX 200's 3.4% dividend yield rate still beats its counterparts elsewhere. And some stocks within the index are performing even more strongly – two in particular stand out for their exceptional yields.

Here are 2 ASX 200 dividend shares with double the current index yield.

Woodside Petroleum Ltd (ASX: WDS)

Woodside is the largest oil and gas producer in Australia. The company acquired BHP's oil and gas portfolio in June 2022, establishing it as the largest energy company listed on the Australian Securities Exchange (ASX) and a top 10 global independent energy company. 

At the time of writing, Woodside shares are trading 0.95% higher for the day at $24.40 a piece. It's been a year of peaks and troughs for the oil producer, though, but the shares have managed to recover losses shed earlier in the year and are currently 0.33% higher than this time last year.

Much of this can be attributed to the share's 10.4% price surge over the past week following news that the company has entered into a major partnership with US energy infrastructure firm Williams Companies Inc (NYSE: WMB).

When it comes to paying out dividend yields to investors, the oil producer provides an impressive passive income, too. 

Woodside paid a fully franked final dividend of 84.9 cents in April, followed by an interim dividend of 81.8 cents per share in September. That equates to a total annual payout of $1.667 per share, the equivalent of a fully franked trailing dividend yield of 6.9%. That's just over double the index yield.

Abacus Group (ASX: ABG)

Abacus is a diversified property group with interests in storage, office, and retail. Its assets are concentrated in metropolitan centres in Australia's eastern and southern states, and in Auckland, New Zealand.

At the time of writing, Abacus shares are trading 0.62% higher for the day at $1.2175 a piece. Like Woodside, Abacus shares have seen a lot of price climbs and falls over the past year. Over the past 6 months, the shares have risen 5.63%, but over the year, they're still trading at a 1.06% deficit.

Abacus also pays an impressive dividend yield to investors. The company paid a dividend of 4.25 cents per share in February and again in August. That equates to a total annual payout of 8.5 cents per share, the equivalent of a trailing dividend yield of around 7%. Going forward, the business expects to pay a distribution of 8.5 cents per share in FY26, too.

Motley Fool contributor Samantha Menzies 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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