2 strong ASX dividend shares to bolster your income

Fortescue Metals Group Limited (ASX:FMG) and this strong ASX dividend share could be great options for income investors right now…

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If you're looking to buy some ASX dividend shares for your portfolio, then I think the ones below could be quality options. 

Both have strong businesses and offer generous dividend yields. Here's why I would buy them when the market reopens:

Fortescue Metals Group Limited (ASX: FMG)

The first ASX dividend share to look at is Fortescue. I'm a big fan of the iron ore producer due to its world class and low cost operations. Another positive is that the company has been increasing the quality of its grade in recent times. This has allowed Fortescue to take advantage of the high prices that iron ore is commanding right now due to robust demand and supply disruption. Overall, I believe it is well-positioned to deliver bumper free cash flows in FY 2020 and FY 2021. And with the majority of its free cash flow likely to be returned to shareholders, this bodes well for its dividends. I estimate that its shares currently offer a fully franked 7% FY 2021 yield.

Rural Funds Group (ASX: RFF)

Another dividend share for income investors to buy is Rural Funds. I like the agriculture focused property group due to its high quality property portfolio and its ultra long tenancy agreements. At the end of the first half, Rural Funds' weighted average lease expiry stood at a lengthy 11.5 years. Combined with rental increases that are built into its leases, this gives the company great visibility with its future earnings. So much so, management has already revealed what it plans to pay shareholders in FY 2021. It has provided distribution guidance of 11.28 cents per share for next year. This works out to be a forward 5.5% distribution yield. I think this makes Rural Funds a great long term option in this low interest rate environment.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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