2 ASX dividend shares with yields over 7%

Here are my two picks for ASX dividend shares with yields over 7%

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The idea of getting a 7% cash return on an investment would be very appealing these days. Record low interest rates mean that the amount you could expect from a savings account or even a term deposit doesn't even com eclose.

Rebounding house prices may be of some comfort to property investors, but they also mean that potential rental yields would be falling for anyone looking to expand their property portfolio.

In terms of mainstream investments, that just leaves ASX dividend shares. Luckily, I've found 2 ASX dividend shares that offer trailing, grossed-up yields over 7% today.

Commonwealth Bank of Australia (ASX: CBA)

CommBank – as the only 'big four' bank not to have cut its shareholder payments this year – seems to be Aussie income investors' new best friend. Indeed, CBA's 5.4% dividend (which grosses-up to 7.7% with franking) remains a lucrative attraction for dividend investors today, especially since it seems CBA will unlikely have to follow its banking compatriot Westpac Banking Corp (ASX: WBC) and conduct a capital raise in the near future.

CommBank's size, strong balance sheet and robust, fully franked dividend make it a top stick on my income shares list. Thus, I think CBA is a solid buy today for dividend investors.

Woodside Petroleum Limited (ASX: WPL)

Woodside is the largest pure oil and gas play on the ASX. It has projects across Australia as well as other countries like the USA, Canada and Africa. Although commodity/resources companies are notoriously cyclical, the price of crude oil has been relatively stable over the past few years.

This has helped smooth the investment pipeline at Woodside as well as the company's dividends. Today, WPL shares offer a raw dividend of 5.23%, which grosses up to 7.47% with franking. Whilst I think this dividend will come under pressure if oil prices plunge for some reason, if crude prices stay in the US$50–60 range then I think it's sustainable.

Thus, I think Woodside is a good option for dividend income today, especially if you're looking for a resources stock to add to your income portfolio.

Foolish Takeaway

These 2 ASX dividend shares both offer grossed-up yields of over 7%, making them very attractive options to consider (in my opinion) for anyone reliant on investment cash flow.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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 Scott Phillips.

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