If you're hunting for passive income from ASX blue chips, Fortescue Ltd and Commonwealth Bank of Australia are both giants, yet offer different flavours of dividend investing.
Fortescue is one of the world's largest iron ore miners, operating large integrated sites across Western Australia's Pilbara region.
Fortescue has also consistently franked its dividends at 100%.
For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%.
Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges.
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If you're hunting for passive income from ASX blue chips, Fortescue Ltd and Commonwealth Bank of Australia are both giants, yet offer different flavours of dividend investing. Let's stack them up side-by-side to see which could make the better addition to a passive income-focused portfolio.
Fortescue is one of the world's largest iron ore miners, operating large integrated sites across Western Australia's Pilbara region. As of its recent company profile, Fortescue sits among the ASX's top companies, having grown rapidly by tapping into global iron ore demand.
Fortescue's high, franked dividend yield — a juicy 6.46%. Fortescue has also consistently franked its dividends at 100%. Over recent years, it's paid out half-yearly dividends, rewarding shareholders in good times.
Iron ore mining is a cyclical game.
Commonwealth Bank is Australia's largest bank by market cap – a household name, and a top dividend payer for many years.
For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%.
Let's compare the main passive income and valuation metrics side-by-side:.
Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges.
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