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2 dividend shares with yields over 8.25%

The interest rate that you can get from the bank is truly terrible at the moment. Someone could have saved their whole life to get to $1 million and wanted to keep their golden egg as cash. Just a few years ago that person would have been able to generate interest of $60,000. Now they’d be lucky to get more than $28,000.

A comfortable lifestyle’s income has been turned into a very basic lifestyle. The only way to generate more money is to move into different assets. Shares are the best way to generate income in my opinion.

One strategy could be to invest in a few high-yielding shares, which boosts the overall yield but could still allow the retiree to keep a lot of cash on hand.

Here are two dividend shares that could fit the bill:

Japara Healthcare Ltd (ASX: JHC)

Japara is one of Australia’s largest aged care provider companies. Australia’s ageing population is a big opportunity for Japara because the country will need a large increase of the number of aged care beds to take up the demand.

The company can expand by building on greenfield sites, brownfield sites, extending existing properties and acquiring smaller aged care providers.

Japara caters for slightly more expensive accommodation as well as having the capability of giving more specialist care when required, which generates more revenue for the company.

Japara is currently trading with a trailing grossed-up dividend yield of 8.37%.

WAM Research Limited (ASX: WAX)

WAM Research is one of the listed investment companies (LICs) run by Wilson Asset Management. This LIC purely focuses on the quality of the underlying business and does not rely on any market-based opportunities.

The LIC has increased its dividend every year since the GFC and has a goal of increasing the dividend every year, if it can.

WAM Research has a track record of beating the market, which I’m sure the current investment team are capable of continuing.

It currently has a grossed-up dividend yield of 8.72%.

Foolish takeaway

Both stocks would make good choices at the current prices, although I believe WAM Research would be a better choice for investors needing income due to the higher yield and quality investment team.

This top dividend stock is also worth considering for income.

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Motley Fool contributor Tristan Harrison owns shares of JAPARA DEF SET and WAM Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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