These 2 dividend shares are offering yields above 6.5%

These are 2 dividend shares that are offering yields above 6.5%.

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Income is a very important part of returns for a lot of people. Dividends from ASX shares are generally less volatile than share price movements and can represent some, if not all, of a person's income in retirement.

If I were to invest in dividend shares I'd want to go for businesses that preferably have reliable dividend histories and have every chance of growing at a good rate over the coming years.

But, the potential dividend ideas also have to pay a good yield, or else I may as well keep cash in the bank.

Here are two ideas:

Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is a newly listed real estate investment trust (REIT) that owns agricultural property that provides investors exposure to the growing global agricultural demand for nutritious healthy food. It's actively looking at more acquisitions.

Its aim is to look for farms located in Australia and New Zealand whilst providing diversification and long-term & attractive leases. Currently, its main tenant is Costa Group Holdings Ltd (ASX: CGC).

It's currently targeting an 8% distribution yield on its assets.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the larger listed investment companies (LICs). It's run by the high-performing Wilson Asset Management and looks at businesses in the ASX 200.

A proposed takeover of Century Australia Investments Limited (ASX: CYA) could see the annual management fee reduce by 0.25% per annum, which would make WAM Leaders more attractive.

Since inception in May 2016 it has outperformed the S&P/ASX 200 Accumulation Index by 1.8% per annum. As it builds its profit reserve it has more wriggle room to steadily grow the dividend.

It started paying a dividend in April 2017 and currently offers a grossed-up dividend yield of 6.6%.

Foolish takeaway

I am becoming a little more interested in Vitalharvest, agricultural businesses could be market-beaters over the medium-term. However, at this stage I would prefer to invest in WAM Leaders.

If it expands its investment universe to ASX 300 shares then it could become an even more attractive investment.

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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 Scott Phillips.

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