There are a good number of dividend shares for investors to choose from on the Australian share market.
Two that offer above-average yields are listed below. Here's what you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is a footwear-focused retailer which owns retail store brands such as HYPE DC, Platypus, The Athlete's Foot and Sneaker Lab. Although many retailers have struggled in 2020 because of the pandemic, Accent wasn't one of them. Thanks largely to its in-demand brands and its growing online business, in FY 2020 the company posted a 7.5% increase in net profit after tax to $58 million.
One broker that is confident this positive form can continue is Morgan Stanley. It believes Accent is well-positioned for long term growth thanks to its store rollouts, strong online offering, and focus on active and casual wear. In light of this, it is expecting the company to increase its dividend to 9.4 cents per share in FY 2021. Based on the current Accent share price, this equates to a fully franked 5.5% dividend yield.
BWP Trust (ASX: BWP)
Another ASX dividend share with an above-average yield is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia, with a portfolio of 68 stores. In addition to this, seven of its properties have adjacent retail showrooms that are leased to other quality retailers. Like Accent, BWP was a positive performer in FY 2020. It reported an occupancy rate of 98% and generated annual rental income of $151.4 million.
Given the strength of the Bunnings business, a similarly positive result is expected from the real estate investment trust in FY 2021. Analysts at Ord Minnett, for example, have pencilled in an 18 cents per share distribution over the next 12 months. Based on the current BWP share price, this will mean a yield of 4.3% for investors.
