2 high yield ASX shares to buy today

ASX shares are the best way to generate income in Australia, and these two dependable businesses are a great place to start.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's now been more than two years since the Reserve Bank of Australia (RBA) has moved interest rates. And the RBA seems pretty happy with the economy chugging along as it is, not too hot, not too cold.

This means a rate increase is probably a fair way off. So the rates on term deposits will continue to be very low for the foreseeable future. You could always invest in property, but the rental yield after costs isn't much better than a term deposit in most cases.

The best place to invest for income is the Aussie sharemarket. So here are 2 examples of high yield shares worth considering.

Aventus Retail Property Fund (ASX: AVN)

Aventus is the owner of 20 large format retail centres (think big, bulky products) around Australia worth $2 billion. The portfolio is tenanted with a diverse mix of strong retailers including Bunnings Warehouse, Good Guys, Harvey Norman Holdings Limited (ASX: HVN) and Nick Scali Limited (ASX: NCK), with no tenant making up more than 4% of the rental income.

More than 85% of leases have contracted rent increases, with either a fixed rate or CPI. Management has noted that there is a large amount of excess site space available across the portfolio which provides further opportunities for development or optimisation.

Aventus expects to pay a distribution of 16.6 cents per share this financial year, which means shares are trading on a yield of 8%.

BKI Investment Co Ltd (ASX: BKI)

This listed investment company holds a diversified portfolio of Aussie shares from a range of sectors, focusing mostly on those with strong yields. And it's not as bank heavy as you might think, with only 22% of the portfolio currently made up of banks.

BKI aims to regularly increase the dividend paid to shareholders over time and charges very low management fees – its total expense ratio for FY 2018 was just 0.16%. The dividend has been steadily increased each year since the GFC.

The appeal here is, you get a ready-made portfolio of higher yield shares and a reliable dividend stream, with no effort involved. For retirees looking for a simple way to get a decent level of income, this is a good option in my view.

BKI trades at a slight discount to NTA and a dividend yield of 7.1%, including franking credits.

Motley Fool contributor Dave Gow owns shares of AVENTUS RE UNIT and BKI Investment Company Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

More on ⏸️ High Yield

⏸️ High Yield

3 secret ASX dividend shares with large yields

These 3 ASX dividend shares are small but they have large dividend yields. One pick is Pacific Current Group Ltd…

Read more »

asx share price dividend yield represented by street sign saying the word yield.
⏸️ High Yield

3 ASX dividend shares with yields above 5%

The 3 ASX dividend shares in this article have yields of more than 5%. One of them is furniture business…

Read more »

ASX shares represented by gold letters spelling ASX sitting atop a line graph
⏸️ High Yield

4 small cap ASX dividend shares with large yields

In this article are 4 small cap ASX dividend shares with large dividend yields including Pacific Current Group Ltd (ASX:PAC).

Read more »

fingers walking up piles of coins towards bag of cash signifying asx dividend shares
⏸️ High Yield

3 ASX shares with large dividend yields

In this article are 3 ASX dividend shares with large dividend yields. One of those businesses is Pacific Current Group…

Read more »

⏸️ High Yield

Macquarie's latest ASX "buy" idea has a 10% yield

It may have been high-growth tech stocks that have dominated but the latest ASX “buy” idea from Macquarie may be…

Read more »

⏸️ High Yield

Get paid huge amounts of cash to own these ASX dividend shares

I think that these ASX dividend shares can pay large amounts of cash to investors needing income, with good stability…

Read more »

⏸️ High Yield

Meet the ASX 200 stock with a dividend yield that'll hit ~14% in FY22

High yield stocks have lost out to high growth momentum stocks. But this could be the time to be buying…

Read more »

⏸️ High Yield

Are these high yield ASX dividend shares worth buying?

Are the high yield ASX dividend shares in this article worth buying? One of the considerations is Telstra Corporation Ltd…

Read more »