3 shares to buy with dividends yielding more than 6%

These 3 ASX dividend shares are all yielding more than 6% including the LIC WAM Research Limited (ASX:WAX).

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

Interest rates are really low these days. What are you supposed to do if you can't even get 2% from your bank account? Shares with dividend yields above 6% could be the answer.

If you pick shares with yields above 6% the yield is high enough that you could still keep some money as cash.

Here are three ideas:

WAM Research Limited (ASX: WAX

WAM Research is a listed investment company (LIC) which invests in undervalued growth businesses on the ASX.

Some of the growth shares it's invested in at the moment are City Chic Collective Ltd (ASX: CCX), Brickworks Limited (ASX: BKW) and BWX Ltd (ASX: BWX).

Over the past five years it has generated returns of 14.4% per annum before fees, expenses and taxes, so WAM Research pays out a growing dividend from this performance. It has increased its dividend every year since the GFC, which is a great record.

It currently has a grossed-up dividend yield of 9.25%.

NAOS Small Cap Opportunities Company Ltd (ASX: NSC) 

Assuming a quarterly 1 cent per share dividend, Naos Small Cap Opportunities offers a grossed-up dividend yield of 7.6%.

This LIC invests in small caps on the ASX with market caps between $100 million to $1 billion, but it only invests in shares that the investment team have high conviction with for the long-term. That's why it only owns 11 different shares. Some of the shares that it has invested in are MNF Group Ltd (ASX: MNF), Service Stream Limited (ASX: SSM) and 360 Capital Total Return Fund (ASX: TOT). It's a diverse group of businesses with good growth potential.

Naos aims to deliver shareholders a sustainable growing stream of fully franked quarterly dividends.

Tassal Group Limited (ASX: TGR

Tassal has a trailing grossed-up dividend yield of 6.1%.

It's Australia's largest fish business with large salmon and prawn farms. There is growing demand for healthy Australian grown fish which are produced with sustainable practices.

The last several years has seen Tassal grow its operating earnings and margins. It's investing in the latest fish infrastructure to reduce costs and increase margins. It's also planning new farms.

Further growth is expected over the long-term and the share price decline could be a long-term opportunity.

Foolish takeaway

Each of these shares could be strong long-term performers for dividends. I think WAM Research could be the best pick because of its large yield, however the Naos LIC is trading at a 15% discount to its net assets, which is an attractive discount.

Tristan Harrison owns shares of NAO SMLCAP FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended Brickworks, MNF Group Limited, and Service Stream 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.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

Three miners looking at a tablet.
Resources Shares

Own ASX mining shares? Experts say an upswing in commodity prices has begun

HSBC economists Paul Bloxham and Jamie Culling explain why global commodity prices are rising.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Share Market News

Will the Reserve Bank wait for the US Fed to cut interest rates first?

Here's when AMP thinks interest rates will be cut in the US, Australia, New Zealand, Canada and the Eurozone.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Gold bars on top of gold coins.

Is it too late to buy gold as an investment in 2024?

Can we still take advantage of gold at new record highs?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Mergers & Acquisitions

Wesfarmers shares baulk on fresh acquisition gossip

A healthcare company gone nowhere in a decade might be on Wesfarmers' radar.

Read more »