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2 ASX dividend shares with generous yields

asx dividend shares represented by tree made entirely of money
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Are you looking to boost your income portfolio with dividend shares? Then you may want to look at the ones named below.

They both currently offer income investors generous dividend yields. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent is a leading leisure footwear retailer. It could be a top option for income investors thanks to its strong position in a market experiencing positive tailwinds.

Accent recently released its half year results and delivered solid growth on both the top and bottom line. For the six months ended 31 December, Accent reported a 6.6% increase in total sales to $541.3 million and 57.3% lift in net profit after tax to $52.8 million. Impressively, the latter was its seventh consecutive record half year profit.

This strong performance was driven by explosive online sales growth, solid like for like sales growth, and the opening of new stores.

According to a note out of Morgans, its expects the company to grow its full year dividend to a fully franked 12 cents per share in FY 2021. Based on the current Accent share price, this will mean a 5.4% yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share with a generous yield is Telstra. It recently released its half year results and retained its 8 cents per share fully franked interim dividend.

Pleasingly, management also revealed that it expects to maintain its final dividend of 8 cents per share as well. This will mean a full year dividend of 16 cents per share. Based on the latest Telstra share price, this equates to a yield of 5.1%.

But perhaps the best news is that a return to growth appears to be on the horizon after years of earnings declines.

Telstra CEO Andy Penn has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023. 

While this might not immediately lead to higher dividends, it should at least secure its 16 cents per share dividend for the foreseeable future. After which, there’s a chance that Telstra will increase its dividend for the first time in a very long time.

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Returns As of 15th February 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 Telstra Limited. The Motley Fool Australia has recommended Accent Group. 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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