2 ASX dividend shares with generous yields to buy now

Wesfarmers Ltd (ASX:WES) and this ASX dividend share offer income investors generous dividend yields. Here's why they could be buys…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for some dividend shares to add to your portfolio? Then take a look at the ones listed below.

Here's why these dividend shares could be great options for income investors right now:

ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

Image source: Getty Images

Aventus Group (ASX: AVN)

The first ASX dividend share to consider is Aventus. It is a fully integrated owner, manager, and developer of large format retail centres.

Thanks to its focus on the household goods sector and everyday needs, which have been performing positively during the pandemic, Aventus has been able to collect rent largely as normal in FY 2021.

In fact, the company reported a 6.5% increase in funds from operations (FFO) to $55.9 million during the first half. Positively, more of the same is expected in the second half.

One broker that was pleased with its result was Goldman Sachs. Following the release, the broker reiterated its buy rating and $3.04 price target on its shares. Goldman is also forecasting a 16.6 cents per share full year dividend in FY 2021.

Based on the latest Aventus share price of $2.91, this represents a generous 5.7% dividend yield.

Wesfarmers Ltd (ASX: WES)

This conglomerate could be another ASX dividend share to buy. Wesfarmers has been a very positive performance during the pandemic, with the majority of its businesses delivering solid sales and profit growth.

This underpinned a very strong first half performance, which saw Wesfarmers report a 16.6% increase in revenue to $17,774 million and a 25.5% jump in net profit after tax to $1,414 million.

Goldman Sachs was also pleased with this result. In response to it, the broker put a buy rating and $59.70 price target on its shares. Goldman is also forecasting a fully franked dividend of $1.88 per share in FY 2021.

Based on the latest Wesfarmers share price of $53.53, this represents an attractive 3.5% yield.

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

More on Dividend Investing

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

$500 buys 148 shares in this 11% yielding ASX income stock!

I'd add this ASX income stock to my portfolio.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Dividend Investing

Looking for long-term passive income? Try one of these ASX shares

These businesses are on track to provide investors with ultra-long-term income.

Read more »

A man in a business suit stands on top of an office chair in a sea of murky water with shark fins circling.
Dividend Investing

Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first

Look before you leap into this dividend stock.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

2 ASX shares with dividend yields above 8%

These high-yield ASX dividend shares have a lot to like.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

Why now could be the perfect time to buy ASX dividend stocks

Regardless of what point of the economic cycle we're in, ASX dividend stocks are a long-term play.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

This is the ASX 300 share offering a 9% dividend yield!

There’s a lot to like about this business for dividends and growth.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces as they review the payouts from ASX dividend stocks. All are wearing glasses.
Dividend Investing

Is it time to load up on these high-yielding ASX dividend shares?

Tumbling share prices have pushed the yields up to 9%.

Read more »