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These ASX dividend shares offer yields of at least 4%

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

Two ASX dividend shares with yields of 4% or greater are listed below. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage is one of the ANZ region’s leading self-storage operators. It tailors self-storage solutions to residential and commercial customers at over 190 storage centres across Australia and New Zealand.

While this sounds like a large number, the company isn’t finished with its growth through acquisition strategy. Since the end of FY 2020, the company has completed eight acquisitions totalling $139 million. In addition to this, management advised that its forward-looking acquisition pipeline remains strong and it is also working hard to complete a number of development projects.

At its recent annual general meeting, management reiterated that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also advised that it plans to pay out 90% to 100% of its earnings to shareholders as distributions. Based on the middle of both guidance ranges (8 cents and a 95% payout ratio), this work out to be a 7.6 cents per share distribution. With the National Storage share price currently fetching $1.90, this equates to a 4% yield.

Rural Funds Group (ASX: RFF)

Another company that expects to reward shareholders with a generous dividend in FY 2021 is Rural Funds. It is a real estate investment trust (REIT) which owns a diversified portfolio of high quality Australian agricultural assets.

The majority of these assets are leased to experienced agricultural operators. This includes almond producer Select Harvests Limited (ASX: SHV wine giant Treasury Wine Estates Ltd (ASX: TWE). The company also boasts a lengthy weighted average lease expiry of 10.9 years.

In FY 2021 the company intends to grow its distribution by its 4% per annum target growth rate. This will mean a distribution of 11.28 cents per share. Which, based on the current Rural Funds share price, works out to be a 4.3% yield.

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Returns As of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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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