The National Australia Bank Ltd. (ASX: NAB) dividend yield and Wesfarmers Ltd (ASX: WES) dividend yield look good right now.
Where else can you get a fully franked (read 'tax effective') income of 6.3% and 5%? That's what NAB shares and Wesfarmers shares are forecast to pay in the year ahead.
National Australia Bank
Earlier this month, NAB reported a slightly weaker first quarter result with profit falling 1%. While no-one likes to see profit falling, investors appear to be upbeat about the result.
You see, in the year ahead, analysts expect NAB's dividend to fall from last year's $1.99 per share to $1.94. But here's the kicker: even if NAB pays that smaller dividend, it still trades on a dividend yield of 6.3%. Then, if you include those tax-effective franking credits the comparable dividend yield blows out to 9%! Try getting that at the…errr… bank!
Wesfarmers
Wesfarmers is the name behind Kmart, Bunnings Warehouse, Coles, Target and more. It is Australia's leading — some would say 'best' — retailer. And it's easy to see why.
Wesfarmers' Bunnings Warehouse is the leader in DIY home improvement, having flexed its competitive muscle against Woolworths Limited's (ASX: WOW) Masters.
Coles is also taking strides to become Australia's premier supermarket. Some (many?) would argue it already is the best supermarket. Finally, we've got Kmart and Target, which are booting goals for shareholders despite tough competitive pressure from Big W, other discount retailers and online.
All-in-all, I think it would be fair to say that Wesfarmers' dividend yield of 5% looks sustainable.
Foolish Takeaway
If you are looking for two juicy dividend shares right now, NAB and Wesfarmers could be what you need. While I'd prefer to buy shares cheaper than they are today, I don't think either company is going away anytime soon.
