2 ASX dividend shares with big yields

Fortescue Metals Group Limited (ASX:FMG) and this ASX dividend share offer income investors very generous yields…

Are you looking for some ASX dividend shares to bolster your income portfolio? Then look no further!

Listed below are two ASX shares that have been tipped to provide their shareholders with generous yields in FY 2021 and FY 2022. Here's what you need to know about them:

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 dividend share to look at is Aventus. It is Australia's largest fully integrated owner, manager, and developer of large format retail centres.

Aventus has been on form over the last 12 months thanks to the quality of its tenancies, the popularity of its centres, and its exposure to everyday needs and national retailers.

In fact, unlike most retail landlords, Aventus has been able to collect rent largely as normal. This led to Aventus reporting both revenue and profit growth during the first half of FY 2021. It also saw the value of its properties increase.

One broker that is particularly positive on the company is Goldman Sachs. It currently has a buy rating and $3.04 price target on its shares. It likes the company due to its everyday needs exposure and its growth opportunities.

Goldman is forecasting a ~16.6 cents per share distribution this year and ~18.5 cents per share next year. Based on the current Aventus share price, this implies 5.6% and 6.2% yields.

Fortescue Metals Group Limited (ASX: FMG)

Another ASX dividend share to consider is Fortescue. Like Aventus, Fortescue has also been a positive performer over the last 12 months.

This has been driven by its low costs, strong production, record shipments, and the sky high iron ore price. In respect to the latter, during the first half, Fortescue achieved an average realised price of US$114 per dry metric tonne for its iron ore. This was up a massive 42.5% on the prior corresponding period.

Pleasingly, since then, the iron ore price has continued to surge higher. In fact, this week the spot iron ore price is fetching a record high of ~US$195 a tonne. This puts the company in a great position to have an even stronger second half, even with its lower grade iron ore.

Ord Minnett is positive on the company. It recently put a buy rating and $29.00 price target on its shares. The broker is also forecasting dividends of $3.50 per share and $3.07 per share over the next two years.

Based on the latest Fortescue share price of $22.60, this represents massive 15.5% and 13.6% yields, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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