2 ASX shares with huge fully franked yields

Westpac Banking Corp (ASX:WBC) and this ASX dividend shares are expected to pay generous dividends in FY 2021…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the interest rates on offer from traditional interest-bearing assets at record lows, it certainly is a tough time to be an income investor.

But don't worry because the Australian share market is home to a large number of dividend shares with far better yields. Two to take a closer look at are listed below:

Fortescue Metals Group Limited (ASX: FMG)

If you're looking for very large yields and don't mind investing in the resources sector, then Fortescue could be worth a look. It is one of the world's leading iron ore producers and boasts some of the lowest costs in the industry.

At present Fortescue is pulling iron ore out of the ground with a C1 cost of just US$12.74 per wet metric tonne. This compares to the current iron ore price of US$176.90 per tonne. So with Fortescue on course to deliver record shipments in FY 2021, it is well-placed to record another bumper full year result.

One broker that is expecting this to be the case is Macquarie. The broker is forecasting a very generous dividend payment in FY 2021 of approximately $2.61 per share fully franked. Based on the current Fortescue share price, this equates to a massive 10.9% dividend yield.

Westpac Banking Corp (ASX: WBC)

Although the big four banks have rallied hard in recent months, they still offer investors potentially generous dividend yields now that APRA is allowing unrestricted dividend payments in 2021.

Especially given improving house prices and Australia's solid economic recovery from the pandemic. This could put the banks in a position to deliver modest growth in the coming years and reward shareholders for their patience.

In respect to Westpac, analysts at UBS are forecasting a $1.00 per share dividend in FY 2021 and then a $1.20 per share dividend in FY 2022. Based on the current Westpac share price, this represents fully franked ~5% and 5.9% dividend yields, respectively.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »