2020 has been a tough year for ASX dividend shares. Former dividend heavyweights like Transurban Group (ASX: TCL), Ramsay Health Care Limited (ASX: RHC) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have slashed, deferred or cancelled their shareholder payments. And let's not even mention the fallen angels of the dividend world, the ASX banks.
So here are 2 ASX shares that currently offer grossed-up dividend yields of over 9% per annum. Furthermore, I think both will continue to fund said dividends throughout 2020 and beyond.
Fortescue Metals Group Limited (ASX: FMG)
This iron ore giant has been making headlines throughout 2020 as it defies the coronavirus pandemic to hit new, all-time highs. At today's close, the Fortescue share price was sitting at $14.85 after reaching as high as $15.25 a month ago. The company's current share price puts it nearly 38% up for the year so far. The sky-high price of iron ore is the main driver behind this surge, with production issues in the Brazilian iron industry causing a supply squeeze in 2020.
Thankfully, Fortescue's dividend is still extremely lucrative, despite the share price's massive surge this year. On current prices, it's worth a 6.73% trailing yield, which grosses-up to 9.61% with full franking credits. If iron ore prices stay around the US$100 per tonne mark, I fully expect this dividend to be maintained in 2020 and beyond.
WAM Research Limited (ASX: WAX)
WAM Research is a listed investment company (LIC) that invests in the small to mid-cap space of the ASX, with a particular focus on 'industrial' shares. This company's modus operandi is to find companies it believes are undervalued or have significant growth catalysts ahead of them. Once this pricing opportunity or catalyst has been realised, the shares are sold and the profits banked in the company's reserve. The LIC then uses this reserve to pay out a stream of fully franked dividends. Some of WAM Research's current holdings include REA Group Limited (ASX: REA), Cleanaway Waste Management Ltd (ASX: CWY) and Adairs Ltd (ASX: ADH).
Speaking of dividends, WAM Research has a doozy. On current prices, the company is offering a trailing yield of 7.04%, which grosses-up to 10.06% with full franking. The best thing? WAM Research's latest dividend came in a 4.9 cents per share, but the company has 26.2 cents per share left in its profit reserves. That should ensure this dividend can be maintained for at least the next couple of years.
Foolish takeaway
I love a good ASX dividend share. If you're looking to add some long-term, income producing shares to your portfolio, I think both those mentioned represent great options.
