If you're looking for some high yield ASX dividend shares to bolster your income portfolio, then look no further.
Listed below are two shares that have been tipped to provide their shareholders with very generous yields in FY 2021. Here's what you need to know:
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Fortescue Metals Group Limited (ASX: FMG)
The first dividend share to consider buying is Fortescue. This iron ore producer has been a very positive performer in FY 2021 and is on course to reward shareholders with bumper dividend payments.
This has been driven by its low costs, record shipments, and, of course, the sky high iron ore price. In respect to the latter, Fortescue achieved an average realised price of US$114 per dry metric tonne for its iron ore during the first half. This was up 42.5% on the prior corresponding period.
Positively, the spot iron ore price is currently fetching US$172.15 a tonne. This puts the company in a position to have an even stronger second half.
Analysts at Credit Suisse are positive on the company. They currently have an outperform rating and $23.50 price target on its shares. The broker is also forecasting a full year dividend of ~$3.61 per share. Based on the current Fortescue share price, this will be a stunning fully franked 17% yield.
Super Retail Group Ltd (ASX: SUL)
Another dividend share to consider buying is Super Retail. As with Fortescue, it has been performing very positively so far in FY 2021.
During the first half, the company reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.
This allowed the retailer behind the BCF, Macpac, Rebel, and Super Cheap Auto brands to declare a fully franked 33 cents per share interim dividend.
Analysts at Goldman Sachs are positive on the company and have a buy rating $15.00 price target on its shares.
The broker expects Super Retail to have a strong second half, allowing it to pay a fully franked dividend of ~81 cents per share in FY 2021 (including a special dividend). Based on the current Super Retail share price, this equates to a ~6.8% yield.
