The inflation environment is hurting a lot of households and businesses at the moment. Valuations have gone down for a wide range of assets. But, there are a select few S&P/ASX 200 Index (ASX: XJO) dividend shares that are benefiting from the environment with a higher share price and expected larger payouts.
There are no rules about how long inflation will stay elevated. That depends on a number of different factors. But, it is interesting to see which types of businesses have performed well this year with everything that has happened.
Here are a few examples of ASX 200 dividend shares that have performed this year.
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New Hope Corporation Limited (ASX: NHC)
New Hope is one of the largest coal miners in Australia, and it's much bigger after a 150% rise of the New Hope share price in 2022 to date.
It's benefiting from a significantly elevated coal price. The consequences of the Russian invasion of Ukraine have led to significantly higher energy prices as countries look for alternative sources of power.
In FY22, New Hope reported a 143% increase in total revenue to $2.56 billion, boosting cash generated from operations by 285% to $1.14 billion. The total dividend per share was boosted by 1,129% to 86 cents per share.
The company also recently announced a share buyback of up to $300 million.
According to Commsec, it's expected to pay a grossed-up dividend yield of 36% in FY23.
Computershare Limited (ASX: CPU)
This ASX 200 dividend share offers a number of different services including share issuer services, employee share plans, business services and so on.
The Computershare share price has gone on a big run this year, rising by 36%. The FY22 final dividend was increased by 30% to 30 cents per share.
While the business is experiencing cost inflation (across all its business lines), it's benefiting from the global interest rate rises being faster and larger than expected – this is boosting Computershare because of all the cash that it holds.
At the AGM it upgraded its FY23 margin income guidance. It's expected to be around $800 million, up $280 million compared to the August guidance. In FY24, the margin income could be around $1 billion, according to the company.
In FY23, management earnings per share (EPS) growth is expected to be around 90%.
APA Group (ASX: APA)
APA is a large owner and operator of gas pipelines around Australia. It connects sources of supply to various markets, delivering around half of the country's natural gas usage.
The ASX 200 dividend share is benefiting from favourable tariff escalation from exposure to Australian and US inflation indices. Its revenue is linked to inflation. The FY22 free cash flow increased by 19.8%, helping fund a 3.9% increase to the distribution per security.
In FY23, the distribution is expected to grow by 3.8% on FY22, to 55 cents per security.
In 2022 to date, the APA share price has risen by 9%.
The business continues to invest hundreds of millions of dollars in "growth projects" for energy infrastructure "today and tomorrow" in both gas transmission and renewable energy generation.
