2 ASX dividend shares with yields over 5% right now

Telstra Corporation Ltd (ASX: TLS) is one of 2 ASX dividend shares offering fully franked yields greater than 5% right now.

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An ASX dividend share is worth more today than perhaps any time in living memory. With interest rates at record lows (near zero in fact), sources of yield outside the share market have more or less dried up.

Unlike in years gone by, investors who are nervous of the inherent volatility of the share market cannot turn to government bonds or term deposits to find a 'safe', inflation-beating yield.

Although the S&P/ASX 200 Index (ASX: XJO) and ASX shares are almost at their most expensive point today than at any time after the coronavirus-induced market crash of March 2020, there are still plenty of shares that offer decent, inflation-beating yields, some even exceeding 5%.

ASX dividend shares, of course, are not safe investments. A company has absolutely no obligation to maintain a dividend payout. And the market can dent your principle capital on any trading day, sometimes permanently. But if you want a 5% yield today, there are few alternatives.

So, here are 2 ASX dividend shares that offer a 5% yield or greater on current pricing.

2 ASX dividend shares offering a 5% yield today

Telstra Corporation Ltd (ASX: TLS)

Telstra is our first ASX dividend share offering a yield of more than 5% today.

In 2020, Telstra paid out 2 dividends, each consisting of an 8 cents per share payout, complete with full franking credits. That gives Telstra shares a trailing dividend yield of 5.13%. That grosses-up to 7.33% with franking.

The Telstra share price has come under fire in recent months due to the company's struggles with the ongoing NBN rollout, together with its thin margins. Even so, its annual general meeting last year, Telstra's management all-but-committed to maintaining a 16 cents per share annual payout in 2021. If that indeed proves to be the case, Telstra is once again set to offer a grossed-up 7.33% yield in 2021 on recent pricing.

Rio Tinto Limited (ASX: RIO)

Our second ASX dividend share with a 5% or greater yield today is this mining giant. Rio shares have been on a tear in recent months, buoyed by a rocketing iron ore price. In fact, Rio is up more than 30% since just the start of November.

The Rio share price also recently just hit a new record all-time high of $127 a share. Deposit these gains, Rio shares are still offering a hefty trailing dividend yield of 4.7% on current prices, which grosses-up to 6.71% with full franking credits. Rio's dividend is arguably less safe than Telstra's given how volatile commodity prices (especially iron ore) tend to be.

Even so, as long as the iron ore price stays at, or even near, its current level, investors can likely expect the dividends to keep flowing from their Rio shares.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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