2 fully franked ASX dividend shares with attractive yields

BHP Group Ltd (ASX:BHP) and this ASX dividend share offer investors attractive fully franked dividend yields right now…

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The good news for income investors in this low interest rate environment is that there are a large number of dividend shares on the Australian share market.

Two ASX dividend shares with attractive yields are listed below. Here's what you need to know about them:

BHP Group Ltd (ASX: BHP)

BHP, also known as the Big Australian, is one of the world's biggest mining companies. It owns a collection of high quality assets across various commodities and regions. This includes the Escondida and Olympic Dam copper operations and the Western Australia Iron Ore and Samarco iron ore operations. Thanks to favourable prices and its low costs, BHP is currently generating significant free cash flow from its operations in 2020.

This bodes well for shareholders in FY 2021 according to analysts at Macquarie. The broker expects BHP to pay a ~$2.80 per share fully franked dividend this year. Based on the current BHP share price, this would mean a very generous 7.7% dividend yield.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of Australia's leading conglomerates. It owns a wide range of popular businesses including Kmart, Target, Catch, Officeworks, and Bunnings. The latter is the company's key business and contributes materially to its overall earnings. The good news is that the hardware giant has been in fine form this year and delivered sales growth of 25.2% for the first four months of FY 2021.

One broker that believes this has left the company well placed to grow its dividend in FY 2021 is Morgans. According to a note out of the broker, its analysts have pencilled in a 157 cents per share fully franked dividend this year. Based on the current Wesfarmers share price, this represents an attractive forward 3.2% dividend yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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