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2 ASX dividend shares with yields over 8%

Everyone loves getting passive income and an alternative source of cash flow. Sure, most of us work our jobs and try to eke out a living from the proceeds, but getting an additional stream of cash from dividend shares certainly makes life more interesting.

In days gone by, it was far easier to get cashflow from a variety of investments – even your bank account used to pay you a healthy inflation-beating return (it wasn’t that long ago I remember getting a 6% return in my savings account).

These days, with record low interest rates, anything outside ASX dividend shares nets you a pretty paltry kickback. Even property yields are at record lows (albeit with massive price gains).

So here are 2 ASX dividend shares that will bag you a yield above 8%.

National Australia Bank Ltd (ASX: NAB)

I think NAB remains one of the best stocks to buy for dividend income on the market today. All of our ASX banks pay pretty hefty yields, but I like NAB’s business exposure, new management team and healthy (relatively) payout ratio of around 77%. NAB shares will give you a starting yield of 6.29% on today’s prices, or 8.99% grossed-up with full franking credits.

WAM Research Ltd (ASX: WAX)

WAM Research is a listed investment company (LIC) with a focus on delivering a rising stream of fully-franked dividends . Since 2010, this LIC has delivered an average annual return of 16.7% through investing in undervalued growth companies in the ASX mid-cap space.

Of this return, dividends have played a huge role, with WAM Research increasing its payout every year since 2008. WAX shares are currently offering a dividend yield of 6.83%, or 9.76% grossed-up. Probably due to this eye-watering yield, WAX shares currently trade at a significant premium to their underlying value (around 15% on today’s pricing). But for that yield, I wouldn’t blame you if you didn’t care.

Foolish takeaway

I think both of these ASX shares with dividends over 8% would be great additions to an income portfolio and have the potential to keep throwing out cash for a long time yet.

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. 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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