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2 high-yield ASX dividend shares I would buy in this bear market

I think the current bear market we find ourselves in is a once-in-a-decade opportunity to buy ASX dividend shares.

Why?

Well for one, the S&P/ASX 200 Index (ASX: XJO) has lost around 30% of its value since mid-February. In short, that means most ASX shares are on sale right now.

And two? Interest rates are now at practically zero. This is likely to translate into a huge markup in income-producing asset prices like ASX dividend shares once fears over the coronavirus and associated shutdown dissipate.

So here are 2 ASX dividend shares I would consider buying while this bear market continues

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport shares have lost their old ‘safe haven’ status in this current crash and are today trading at $5.95 at the time of writing – a good 36% off their all-time high. There’s little doubt this company will take a nasty hit to revenues and earnings (which may even be passed on through lower dividends) in 2020 and maybe even in 2021.

But I also think that Sydney Airport is well-positioned to recover quickly once the restrictions on the economy and travel are lifted. Monopolistic businesses are rare but highly lucrative. People are still going to want or need to travel well into the future, and Sydney Airport is the only real choice for most people living in Sydney or even NSW. Thus, I think it’s a good time to pick up some Sydney Airport shares if you’re a long-term investor today.

Fortescue Metals Group Limited (ASX: FMG)

Talk of the big ASX miners has subsided in recent weeks as investors worry about other ASX shares making bigger waves. But Fortescue is a company that has held up remarkably well during this market crash. Since mid-February, the Fortescue share price has slumped just 12.2%, which compares very favourably with the broader market’s ~30% loss.

Iron ore (Fortescue’s raison d’être) prices have remained very consistent during the coronavirus pandemic – asking US$86 a tonne, as of this morning. Considering Fortescue’s cost of mining a tonne of iron ore is around US$12.50, the miner should be able to continue paying a healthy dividend for the foreseeable future.

That will be music to the ears of dividend investors in this uncertain time, given Fortescue shares are offering a trailing, fully-franked dividend yield of 10.19% (or 14.56% grossed-up) on current prices.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings 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.