If you're searching for generous dividend yields, then you might want to look at the dividend shares listed below.
Here's what is expected from them in FY 2021:
Rural Funds Group (ASX: RFF)
The first dividend share to look at is Rural Funds. It is an agriculture-focused property group that owns a number of properties across five agricultural sectors. These properties are leased to some of the biggest operators in the industry, such as wine giant Treasury Wine Estates Ltd (ASX: TWE), on long term rental agreements.
These long leases have rental increases built into them, giving the company great visibility on its future earnings. So much so, management aims to increase its distribution each year by approximately 4%.
Pleasingly, it plans to do exactly this in FY 2021 and is forecasting an 11.28 cents per share distribution. Based on the current Rural Funds share price, this equates to a 4.55% yield.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share to look at is Telstra. While the telco giant has been a big disappointment for income investors over the last five years, the dividend cuts finally appear to be over and its dividend now looks sustainable for the foreseeable future.
And thanks to its T22 strategy, it may not be too long before a return to both earnings and dividend growth is possible.
Analysts at Goldman Sachs are forecasting a 16 cents per share fully franked dividend through to FY 2023. Based on the current Telstra share price, this represents a 5.15% dividend yield.
The broker has a buy rating and $3.75 price target on the company's shares at present. It is positive on Telstra's prospects and supports its decision to look to monetise its TowerCo assets. It also appears to be a fan of its overall plan to split the company up into separate entities to unlock value.