Looking for high yielding ASX passive income shares to add to your investment portfolio?
You're not alone!
Now, a number of top dividend stocks have seen their yields fall towards 5% or below this year.
BHP Group Ltd (ASX: BHP), for example, slashed both its final and interim dividend payments amid a big drop in iron ore prices. That sees BHP shares trading on a fully franked trailing yield of 5.2% at recent prices.
While that's more than you're likely to get from any term deposits, it falls well short of the passive income potential on offer from the two high-yielding stocks we look at below.
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Two high-yielding ASX passive income stocks
Before we dive into these two leading ASX dividend shares, please remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.
With that said, I believe that robust global energy demand and potential supply disruptions should support both the share prices and upcoming dividends of the two high-yielding stocks in question.
Which brings us to our first ASX passive income play, S&P/ASX 200 Index (ASX: XJO) oil and gas company Woodside Energy Group Ltd (ASX: WDS).
While Woodside's dividends have also come down amid a retrace in energy prices, the stock still trades at a very appealing yield.
Woodside paid a fully franked interim dividend of $1.243 per share on 28 September. The company's final dividend of 91.7 cents will have hit eligible investors' bank accounts on 4 April.
That equates to a full-year payout of $2.16 a share.
At the recent Woodside share price of $28.75, this ASX dividend gem trades on a fully franked trailing yield of 7.5%. Or enough to bank $750 a year from a $10,000 investment.
Plus, of course, we'll be hoping to see the Woodside share price shrug off the recent slide and end the year higher.
The second ASX passive income stock you may wish to run your slide rule over is Yancoal Australia Ltd (ASX: YAL).
As with Woodside, the record dividends the ASX coal stock paid out in 2022 and the first half of 2023 have come down over the past year amid lower energy prices.
But Yancoal still remains a top-yielding stock. And with plenty of cash in the bank and a strong medium-term outlook for global coal demand, I believe its upcoming dividends should hold up well.
As for the past 12 months, Yancoal paid a fully franked interim dividend of 37 cents a share on 20 September. The final dividend of 32.5 cents a share will be paid out on 30 April. (The stock traded ex-dividend on 12 March, so it's too late to grab that one.)
That equates to a full-year payout of 69.5 cents a share.
At the recent Yancoal share price of $5.55, the coal miner trades on a fully franked trailing yield of 12.5%.
Or enough to bank $1,250 a year in passive income from a $10,000 investment in this ASX dividend share.
