2 highly rated ASX dividend shares with big yields

Westpac Banking Corp (ASX:WBC) and this ASX dividend share could be quality options for income investors due to their generous yields…

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Looking for dividend shares to buy? Then take a look at the ones listed below.

Not only do they provide investors with attractive yields, they also come highly rated. Here's what you need to know:

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company behind popular retail store brands BCF, Macpac, Rebel, and Super Cheap Auto. With international tourism off the cards for a little while longer, Super Retail has been tipped to benefit from a favourable redirection of consumer spending.

This certainly has been the case over the last six months. Its brands have been performing very strongly in FY 2021, with management expecting to report a 23% increase in half year sales this month.

Things have been even better for its earnings due to margin expansion. Super Retail's net profit is expected to increase 135% to 139% over the prior corresponding period to $174 million to $177 million.

Analysts at Goldman Sachs are very positive on Super Retail and have a buy rating and $14.80 price target on its shares. The broker also expects the company to pay a fully franked dividend of 78 cents per share in FY 2021. Based on the latest Super Retail share price, this represents a sizeable 6.7% dividend yield.

Westpac Banking Corp (ASX: WBC)

It has been a difficult few years for the banks, but the worst does finally appear to be over. Especially given recent reductions in COVID-19 loan deferrals. These reductions appear to indicate that the banks have over-provisioned for losses, which could lead to a reversal in provisions in the future.

And with the banks well-capitalised and APRA removing dividend restrictions, Westpac and the rest of the big four have been tipped as generous dividend payers in the near term.

Analysts at Morgans are fans of Westpac. It is the broker's preferred pick in the group and has an add rating and $25.50 price target on its shares. The broker is also forecasting a $1.24 per share fully franked dividend in FY 2021.

Based on the current Westpac share price, this represents a 5.6% yield.

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.

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