Top-quality ASX 200 dividend shares are like gold dust in times like these. We've well and truly emerged from the March bear market, but the cost has been many companies slashing their distributions to shareholders.
Whether you're a retiree or a young investor, dividend shares are a valuable part of any portfolio. Regular dividends can provide handy income or be reinvested to turbo-charge your retirement plans.
With that in mind, here are a few of my top dividend shares that are yielding over 8% right now.
3 ASX 200 shares with hefty dividend yields
For dividends, the Aussie real estate investment trusts (REITs) are an obvious place to start. The trust structure of the REITs means 90% or more of their profits are paid to investors each year.
That's why Scentre Group (ASX: SCG) boasts an impressive 8.67% dividend yield right now. Scentre owns and operates Westfield shopping centres across Australia and New Zealand. Clearly, Aussie retail hasn't been doing well amid the coronavirus pandemic and this has been reflected in the Scentre share price.
The ASX 200 retail REIT has slumped 42.3% lower this year as investors have flocked to safety. While Scentre's earnings may fall and lead to lower dividends, it could also be a cheap buy if you're looking at the long-term.
Provided shopping centre foot traffic bounces back, government stimulus could prop up rents in the short-term. That means Scentre's earnings may not be as bad as many suspect and that 8.67% dividend yield may remain intact.
The other place I'm looking for ASX 200 dividend shares is the Aussie banking sector. Despite surging 15.9% higher in June, Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are still yielding a whopping 9.21% right now.
The Aussie banks have slashed distributions under the orders of the banking regulator, Australian Prudential Regulation Authority (APRA). APRA wants the banks to preserve capital in case we encounter a Great Recession-type downturn.
However, investors have still been reasonably bullish on the ASX banks like Bendigo. I personally don't look to invest outside of the major banks within the banking sector, but Bendigo could be a good option if you think the big four are over-bought.
In terms of the big four, Westpac Banking Corp (ASX: WBC) shares also have a super-charged yield right now. Westpac is currently paying 9.54%, which is an impressive return if the bank can maintain its dividends in the long-term.
But… it's buyer beware
As I said, top ASX 200 dividend shares are like gold dust right now. However, we'll have to wait until the next earnings cycle (August or November) to really see which companies are able to maintain their dividends.
Dividend yields can be misleading in the current market, so be wary of buying for the headline yield numbers.
If you're investing for the long-term, however, there could be some good ASX 200 shares to buy that can churn out profits well into the future.
