2 ASX dividend shares with yields over 8% today

Fortescue Metals Group Limited (ASX: FMG) is one of the 2 ASX dividend shares offering a fully franked yield of more than 8% today

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This week, the Reserve Bank of Australia (RBA) gave Australians yet another interest rate cut, slashing 15 basis points from the cash rate, which now stands at yet another record low of 0.1%. This unprecedented action from the RBA highlights both the growing impotence of cash and fixed-interest investments (if they can be called that these days), as well as the importance of owning dividend-producing shares in an income-focused portfolio. So to aid in this endeavour, here are 2 ASX dividend shares offering fully franked yields of more than 8% today.

2 ASX dividend shares with yields of more than 8% today

Fortescue Metals Group Limited (ASX: FMG)

Fortescue has had a phenomenal 2020 so far if share prices are anything to go by. The Fortescue share price has spent most of the year rocketing to new all-time highs. It started out in January at $10.78 and climbed as high as $19.56 in late August, before settling down at the current share price of $16.80, at the time of writing.

But let's talk dividends, seeing as that's why we're here. In 2020, Fortescue has paid 2 dividends, one interim payment of 76 cents a share in April, and one final payment of $1 a share in October. $1.76 in dividends for 2020 gives Fortescue shares a trailing yield of a whopping 10.55%, or 15.07% grossed-up with full franking. Keep in mind that since Fortescue is an iron ore miner subject to the whims of the iron ore price at any time, these dividends are not gurenteed to continue at these levels going forward. Especially if the iron ore price collapses for some reason in the future.

Telstra Corporation Ltd (ASX: TLS)

Telstra — the ASX's largest telco — is a second ASX dividend shares offering a yield of more than 8% today. Telstra's share price has been struggling in recent weeks. It's currently very close to its all-time low of $2.66, and is trading for just $2.79 at the time of writing. However, lower share prices normally translate into higher starting dividend yields for new investors.

Telstra's 2 most recent dividends came in at 8 cents per share each (including in both cases a 3 cents per share special dividend), which the company has recently indicated it wishes to pay again in FY2021. That's despite headwinds from the ongoing nbn rollout and the coronavirus pandemic that the company has been dealing with. A 16 cents per share annual dividend gives Telstra a trailing (and forward, if the company is to be believed) dividend yield of 5.76%, or 8.23% grossed-up.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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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