You are probably like me and enjoy being paid. You probably also like the idea of not needing to work to get paid. Well, that is kind of how dividends work. Your capital (or shares) do all the hard work for you, and if they are dividend payers you can watch the money trickle in every 3, 6 or 12 months.
So, below I have compiled a list of 5 ASX shares that each pay a dividend of more than 5% to help you boost your income.
Westpac Banking Corp (ASX: WBC)
Westpac recently cut its dividend from 94 cents down to 80. It has been through a tough few years thanks to lowering interest rates squeezing margins, the royal commission and more recently the AUSTRAC scandal. However, thanks to its declining share price it still offers investors a fully franked dividend yield of 6.3%, which is 9% grossed-up.
Harvey Norman Holdings Limited (ASX: HVN)
The Australian retailer's share price has surged over 30% in the last 12 months. However, this hasn't stopped it from providing a whopping dividend yield of 7.8%, which equates to 11.1% grossed-up. It also recently reported a 4.5% increase in earnings per share, along with a strengthening debt-to-equity ratio.
BHP Group Ltd (ASX: BHP)
BHP is Australia's largest listed resource company. It is diversified across various commodities and produces iron ore, coal, copper and uranium. These operations allow it to generate large free cash flows, which it pays out to share holders as annual and special dividends. BHP currently offers a trailing yield of 4.9%, which grossed-up gets us to 7%.
Rural Funds Group (ASX: RFF)
Rural Funds owns a diversified portfolio of agricultural farmland. Its share price is currently trading closer to its net asset value than in the past, giving it a forward yield of 5.8%. Management also has a goal of increasing its dividend by 4% each year, which it has achieved since it started paying a dividend in 2014. This goal is supported by the long average life of its leases, which are mostly linked to index with CPI, or have fixed indexation with market review.
Suncorp Group Ltd (ASX: SUN)
Based in Queensland, Suncorp is one of Australia's largest financial services brands and operates across 5 core businesses. One of these businesses, its insurance branch, has recently been hit hard thanks to the storms and bush fires across Australia. However despite this, Suncorp's share price has not been materially moved thanks to reinsurance programs and stop losses to help minimise these impacts.
Suncorp currently offers investors a net and grossed-up dividend yield of 5.43% and 7.76%, respectively.
