2 ASX dividend shares with yields over 5% today

JB Hi-fi Ltd (ASX: JBH) is one of the 2 ASX dividend shares offering a yield of more than 5% today, including lucrative franking credits

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Since the Reserve Bank of Australia (RBA) cut interest rates again last week to another record low of just 0.1%, the importance of owning dividend shares for income purposes has only increased. With rates at such low levels, there are simply no real 'safe' alternatives anymore to a dividend if you want meaningful cash flow from your investments.

Sure, you could try a Commonwealth Bank of Australia (ASX: CBA) term deposit, but those are now going for, at most, 0.6% per annum these days. But there are some ASX dividend shares out there today that run miles around those kinds of numbers. Here are 2 such shares, both offering fully franked dividend yields of more than 5% today.

3 ASX dividend shares with a yield over 5% today

JB Hi-Fi Ltd (ASX: JBH)

You might know JB from its large yellow store banners, but this electronics and white goods retailer offers far more than that to shareholders today. JB has long moved away from its traditional product range of hi-fi equipment, DVDs, CDs and records. Today, it sells everything from televisions, phones and computers to fridges, microwave ovens and washing machines. And it's quite good at it too, if the company's performance numbers are anything to go by. In it's FY2020 annual report, JB told investors that sales were up more than 11% from FY19's numbers (including 56.6% growth in online sales) and that profits were up by more than 42%.

Those profits flowed through to a 76.5% increase in the company's final dividend to 90 cents a share. Since JB  Hi-Fi is currently trading around $45.97 a share, that gives JB shares a trailing dividend yield of 4.11%, or 5.87% grossed-up with full franking.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is not often regarded as a top ASX dividend share. It's instead more well-known for its fast-growing funds management business. Magellan runs a wide portfolio of managed funds, exchange-traded funds (ETFs) and Listed Investment Trusts (LITs). Some of the more popular options are the unlisted Magellan Global Fund and the Magellan High Conviction Fund, as well as the listed Magellan Global Trust (ASX: MGG). As of 30 October, Magellan has more than $103 billion in assets under management.

However, Magellan also pays a decent dividend, which has been increasing rapidly over the past few years. In 2020, the company has paid out $2.15 in dividends per share, which gives the Magellan share price a trailing dividend yield of 3.53% on current prices, or 5.04% grossed-up with the company's full franking.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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