2 ASX dividend shares with 6%+ yields to buy

Fortescue Metals Group Limited聽(ASX:FMG) and this ASX dividend share offer investors yields greater than 6%…

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man handing over wad of cash representing ASX retail capital return

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Luckily for income investors in this low interest rate environment, there are a large number of dividend shares to choose from on the Australian share market.

But with all the quality options, it can be hard to decide which ones to buy.

Two ASX dividend shares with 6%+ yields that come highly rated are listed below:

Aventus Group聽(ASX: AVN)

Although the retail sector has been a difficult place to be this year because of the pandemic, particularly in respect to property, Aventus has been largely unaffected. This is thanks to the popularity of its retail parks with consumers and their high weighting towards everyday needs. Among its tenants you鈥檒l find retailers such as ALDI, Bunnings, Officeworks, and The Good Guys.

One broker that has been impressed with its performance and expects more of the same in the future is Goldman Sachs. It recently reiterated its buy rating and $2.76 price target on its shares. It notes that Aventus has a quality portfolio and opportunities with its land bank. And based on the latest Aventus share price, the broker estimates that it offers a forward 6.2% dividend yield.

Fortescue Metals Group Limited聽(ASX: FMG)

This iron ore producer could offer one of the most generous dividend yields on the Australian share market right now. This is thanks to the high levels of free cash flow the company is generating due to sky high iron ore prices and its ultra low costs. At the time of writing, the benchmark iron ore price is up slightly to US$123.180 a tonne. This compares to Fortescue鈥檚 current C1 costs of just US$12.74 per wet metric tonne.

Last week analysts at Macquarie reaffirmed their outperform rating and $20.00 price target due to the high iron ore prices. They estimate that its free cash flow generation will allow the Fortescue board to declare a dividend of approximately $1.64 per share in FY 2021. Based on the latest Fortescue share price, this equates to a fully franked 8.8% dividend yield.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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