There are a few ASX dividend shares out there with much higher dividend yields than most of the market.
High yield businesses come with the normal points of risks and rewards. Plenty of high yield dividends may not stay high yield forever.
These businesses currently have a high dividend yield for shareholders:
Nick Scali Limited (ASX: NCK)
Nick Scali is an ASX dividend share that is now paying a much bigger payout than a few years ago. The FY21 interim dividend payout was the same size as the entire payout in FY18.
The board of Nick Scali implemented a 60% increase of the dividend to 40 cents per share after underlying earnings per share (EPS) grew by 99.5% to 50 cents.
Not only did revenue increase by 24.4% to $171.1 million, but the underlying earnings before interest and tax (EBIT) margin grew by 1,270 basis points to 33.6%.
The ASX dividend share is also expecting more growth in the second half of FY21, with the sales order growth in January being up 47% year in year. The sales order bank at the end of January 2021 was at an all time high.
At the current Nick Scali share price, it has a trailing grossed-up dividend yield of 9.4%.
Pengana Capital Group Ltd (ASX: PCG)
Pengana is a fund manager that operates a number of different strategies for investors including ASX shares, international shares and private equity.
The business is seeing steady growth of its funds under management (FUM). In the FY21 half-year result, it reported that funds under management increased by 15% to $3.6 billion thanks to a mixture of investment performance ($463 million) and positive net inflows ($81 million).
Indeed, the ASX dividend share said that all of its strategies outperformed their respective benchmarks for the period.
Underlying earnings per share (EPS) went up by 13% to 5.96 cents, which helped fund a 25% increase to the interim dividend to 5 cents per share.
The last 12 months of Pengana dividends amounts to a grossed-up dividend yield of 7.1%.
At the end of February 2021, Pengana’s FUM had grown to $3.63 billion.
Pacific Current Group Ltd (ASX: PAC)
Pacific is another ASX dividend share that it’s in the funds management business.
It doesn’t actually run any funds itself yet, instead it looks for fund managers around the world to invest in. Pacific Current takes stakes in those businesses and then aims to help them grow.
Some of its investments include fund managers called Aether, Carlisle, GQG, Proterra, Victory Park and ROC.
Pacific Current said that widespread growth led to its FUM increasing by 23.9% to $113 billion on a 100% basis. GQG continues to receive “substantial” inflows.
In the recent FY21 half-year result it said that base management fees grew by 10% (or 16% in US dollar terms), whilst operating expenses fell 24%. It was a large fall in performance fees (down 68%) and a stronger Australian dollar that saw underlying net profit fall 13.4%.
However, Pacific Current announced that the interim dividend would remain at $0.10 per share, which represented a dividend payout of 44%.
The ASX dividend share has a trailing grossed-up dividend yield of 9%.