2 high quality ASX dividend shares with generous yields

Here’s why I think Dicker Data Ltd (ASX:DDR) and this ASX dividend share would be great options for income investors right now…

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With the outlook for interest rates in Australia incredibly bleak, I suspect that dividend shares will remain the best way to earn a passive income for some time to come.

But which ASX dividend shares should you buy today? I think these are the ones to snap up right now:

Dicker Data Ltd (ASX: DDR)

I think Dicker Data is a great option for income investors. It is a leading wholesale distributor of computer hardware and software. Despite the pandemic, Dicker Data has been a very positive performer in FY 2020 and recently released a strong half year result. During the six months, the company delivered an 18.1% increase in revenue to $1,006.1 million and a 23.6% jump in net profit after tax to $29.4 million.

Given its strong market position and favourable industry tailwinds, I believe it is well-placed to continue its growth over the coming years. For now, the company is expecting to pay a 35.5 cents per share dividend for the full year. Based on the current Dicker Data share price, it offers a fully franked forward 4.8% dividend yield.

National Storage REIT (ASX: NSR)

Another option I would suggest investors consider buying is this self-storage operator. I believe it could be a great long term option due to its strong position in a fragmented market and its growth through acquisition strategy. As with Dicker Data, National Storage was a positive performer in FY 2020 despite the pandemic. It delivered a 9% increase in underlying earnings to $67.7 million over the 12 months.

Looking ahead, FY 2021 is expected to be tougher and management has warned that its earnings could be flat. However, this is a lot better than what many other companies will achieve in FY 2021 and still implies a very attractive yield. It expects to deliver earnings of 7.7 cents to 8.3 cents per share. After which, it will pay out 90% to 100% of this to its shareholders. The middle of this range (8 cents earnings per share and a 95% payout ratio) would be a 7.6 cents per share distribution. Based on the current National Storage share price, this represents a generous 4.1% yield.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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

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