2 quality ASX dividend shares with attractive yields

Super Retail Group Ltd聽(ASX:SUL) and this ASX dividend share offer investors attractive yields in 2021. Here’s what you need to know…

| More on:
Hand drawing growing Dividends investment business graph with blue marker on transparent wipe board.

Image source: Getty Images

Are you fed up with the low interest rates on savings accounts? You鈥檙e not alone, if you are.

The good news is that the ASX is home to a large number of shares with attractive dividend yields.

National Storage REIT聽(ASX: NSR)

The first dividend share to look at is National Storage. It is one of the region鈥檚 largest self-storage operators with over 190 locations tailoring self-storage solutions to residential and commercial customers.

Although it has a large network, management still sees plenty of room for growth through its acquisition and development strategy. In fact, since the end of FY 2020, the company has completed eight acquisitions for $139 million and is working to complete a number of development projects.

Management recently reiterated that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also plans to pay 90% to 100% of its earnings out to shareholders as distributions.

Based on the middle of both guidance ranges (8 cents and a 95% payout ratio), this equates to a 7.6 cents per share distribution. Based on the current National Storage share price, this represents a 3.9% yield.

Super Retail Group Ltd聽(ASX: SUL)

Another dividend share to look at is Super Retail. It is the retail group behind popular store brands such as Macpac, Rebel, and Super Cheap Auto.

It has been a very positive performer in FY 2021. Last week it revealed that it expects to report a 23% increase in half year sales over the prior corresponding period. Things were even better on the bottom line thanks to margin expansion. It is expecting a normalised net profit after tax in the range of $174 million to $177 million. This represents a 135% to 139% increase on the first half of FY 2020.

One broker that is positive on the company is Goldman Sachs. It has just reiterated its buy rating and lifted its price target on the company鈥檚 shares to $14.80. The broker also estimates that it will pay a fully franked dividend of 78 cents per share in FY 2021. Based on the current Super Retail share price, this equates to a 6.8% dividend yield.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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

More on 鈴革笍 Dividend Shares