This article is about 3 ASX 200 dividend shares with a high yield. One of them is JB Hi-Fi Limited (ASX:JBH).
The post 3 high-yielding ASX 200 dividend shares appeared first on The Motley Fool Australia. –
There are some S&P/ASX 200 Index (ASX: XJO) dividend shares that have higher dividend yields.
Here are three of those examples:
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the leading electronics and appliance retailers in Australia and New Zealand.
It has been regularly growing its dividend. In FY20 the final dividend shot 76.5% higher and the annual FY20 dividend went up 33.1% to $1.89 per share.
Based on the current JB Hi-Fi share price it has a grossed-up dividend yield of 5.2%.
The ASX 200 dividend share revealed that it’s going to report more growth in its upcoming FY21 half-year result. The retailer said that its sales went up by 23.7% to $4.94 billion, earnings before interest and tax (EBIT) went up 75.9% to $462.7 million and net profit after tax (NPAT) rose by 86.2% to $317.7 million. Online sales went up 161.7% to $678.8 million, which represented 13.7% of total sales.
JB Hi-Fi said that disciplined cost control combined with strong sales growth drove significant operating leverage. According to management, gross margins were well managed with strong improvements in gross margins in key categories, particularly for The Good Guys.
APA Group (ASX: APA)
This ASX 200 dividend share owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.
At the current APA Group share price it has a distribution yield of 5.3%.
APA funds its distribution from the annual operating cashflow. The cashflow grows as it completes more of its energy infrastructure projects.
The business is building a new 580km pipeline in Western Australia for a cost of $460 million. The new pipeline will connect the resource rich Goldfields region to emerging gas fields. This will make an interconnected gas grid for APA.bManagement are expecting this new pipeline to be finished around the middle of 2022.
This may be able to unlock even more growth for APA because historically it gets requests for energy connections from miners that want a reliable and affordable energy source, complementing their variable renewable energy sources.
Brickworks Limited (ASX: BKW)
Brickworks is an ASX 200 dividend share with one of the longest dividend records. It hasn’t cut its dividend for over 40 years.
That dividend is supported by two key asset groups.
Brickworks owns around 40% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which is an investment conglomerate with a diversified portfolio. It owns ASX shares like TPG Telecom Ltd (ASX: TPG), Brickworks, Clover Corporation Limited (ASX: CLV), Australian Pharmaceutical Industries Ltd (ASX: API), Palla Pharma Ltd (ASX: PAL), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT). It’s also invested in private businesses in sectors like financial services, resources and agriculture.
Soul Patts pays Brickworks (and all other shareholders) a growing dividend. The Soul Patts dividend per share has risen every year since 2000.
The other dividend-supporting asset for Brickworks is its industrial property trust that it owns along with Goodman Group (ASX: GMG) in a joint venture. This trust pays a growing stream of rental profit to Brickworks (and Goodman).
That property trust is now building two huge distribution warehouses, one each for Amazon and Coles Group Ltd (ASX: COL). Once these two warehouses are finished it’s expected to increase the gross assets of the trust to more than $3 billion and the rental profit distribution will increase by more than 25%.
At the current Brickworks share price it has a grossed-up dividend yield of 4.6%.
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Returns As of 6th October 2020
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Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.