Guess which 3 ASX 200 shares are among the top 10 dividend payers in the world

Income shares are gaining more attention as growth shares are struggling.

| More on:
a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Three ASX 200 dividend shares count among the world's biggest payers in 2021
  • Soaring commodity prices saw global mining stocks return record cash to shareholders
  • The mining industry is highly cyclical

The S&P/ASX 200 Index (ASX: XJO) has slipped into the red, down 0.89% at the time of writing after managing to post gains of some 0.4% in the morning.

ASX 200 shares have struggled this year, faced with the prospect of rising interest rates and soaring geopolitical tensions.

And as investors mull the potential that the big post-pandemic sell-off growth years may be behind us, the focus on dividends is making a comeback.

But did you know that 3 ASX 200 shares count among the top 10 dividend-paying stocks in the world, according to data sourced from Janus Henderson?.

Even better for investors, their dividends are fully franked, decreasing (or potentially negating) investors' tax burdens on the payouts.

To be clear, we're talking about total dividend payouts by the company in dollar terms. This doesn't, as you'll see below, equate to dividend yields.

So, without further ado…

ASX 200 shares in the top-10 global dividend category

Leading the charge as the world's top dividend payer in 2021 is iron ore giant BHP Group Ltd (ASX: BHP).

At the current share price, BHP pays a dividend yield of 9.9%, fully franked.

Our next ASX 200 share, and the No. 3 dividend payer in the world in 2021, is Rio Tinto Limited (ASX: RIO).

Rio also paid out some special cash dividends during the year. At the current share price, Rio Tinto pays a trailing dividend yield of 7.5%, fully franked.

And the 10th  biggest dividend payer on Earth in 2021 is fellow ASX 200 share and iron ore miner, Fortescue Metals Group Limited (ASX: FMG).

With Fortescue's share price the only one among these three to have declined in 2022, its trailing dividend yield currently stands at 15.8%, also fully franked.

Highlighting the strength of the global mining industry in 2021, Janus Henderson noted:

Record payments from the miners meanwhile reflected the strength of their profits. The mining sector distributed US$96.6 billion over the year, almost double the previous record set in 2019 and ten times more than during the slump in 2015-16. However, as a highly cyclical sector their distributions will return to more normal levels when the commodity cycle turns.

It's worth taking note of the cyclicality of the sector.

It's also worth noting that the yields mentioned above are trailing yields. There is no guarantee yields will match these in 2022.

How have these 3 miners been performing?

Atop its juicy, world-beating dividends, the BHP share price is up almost 13% in 2022.

Rio Tinto's share price has gained 13% over that same time, while Fortescue's shares have slipped 7% year-to-date.

By comparison, all the ASX 200 shares taken together are down around 7% this year.

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 Bruce Jackson.

More on Dividend Investing

Humorous child with homemade money-making machine.
How to invest

How I'd fill an empty ASX share portfolio to build a $500 monthly passive income machine

Building an ASX passive income portfolio simpler than you may think.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Dividend Investing

Buy these ASX dividend shares for 16% to 55% total returns

Analysts think income investors should be buying these dividend shares right now.

Read more »

Blue chip in a trolley with a man pushing it.
Dividend Investing

3 blue-chip alternatives to CBA shares for MORE passive income

These blue-chip stocks look like appealing dividend picks.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Energy Shares

Dividend investors: Top ASX energy shares for November

These are the energy stocks I would buy for dividend income.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

Buy these excellent ASX dividend stocks for 6% to 7% yields

Analysts at Bell Potter think these stocks could be buys for income investors.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Analysts say these ASX dividend shares are buys this month

Here's what analysts are predicting for these income options.

Read more »

Dividend Investing

2 ASX 200 dividend stocks that could be strong buys

Bell Potter is saying good things about these buy-rated income stocks.

Read more »

a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.
Dividend Investing

3 ASX dividend shares to buy instead of the big four banks

Analysts think these dividend shares could be top picks instead of the banks.

Read more »