The two ASX dividend shares revealed below both have dividend yields of more than 4%. They have also been delivering good dividend growth in recent years.
Not every dividend stock has been increasing the dividend in recent times. COVID-19 has made it very difficult for shares like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD).
However, these two picks have solid starting yields and a record of growth:
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JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the largest retailers in the country. It specialises in selling phones, computers, TVs and household appliances. It's currently rated as a buy by the broker Credit Suisse which has a price target on the business of $57.39. That suggests a potential upside over the next 12 months of more than 20%.
After a 12% fall in the share price over the last month, the JB Hi-Fi share price is now more attractive according to the broker. It was particularly impressed by the trading update for the quarter ending 31 March 2021. In that update, JB Hi-Fi Australia quarterly sales grew by 10.4%. JB Hi-Fi New Zealand sales rose 16%. The Good Guys sales rose by 5.8%.
JB Hi-Fi said that it continues to see heightened customer demand and strong sales growth rates over a two-year period. The broker believes investors don't appreciate how much household demand there still is for the ASX dividend share's products.
Based on Credit Suisse's numbers, the JB Hi-Fi share price is valued at 11x FY21's estimated earnings with a forecast grossed-up dividend yield of 8.3%.
Kogan.com Ltd (ASX: KGN)
The Kogan share price has fallen heavily during 2021. Over the last month alone Kogan shares have dropped by 25%.
For potential dividend investors, this has had the effect of boosting the trailing dividend yield on offer. Using the dividends paid over the last 12 months, Kogan currently offers a grossed-up dividend yield of 4.1%.
If the e-commerce company is able to sort out its inventory issues sooner rather than later should it should mean that there's no long-term impact on the Kogan dividend.
In the FY21 half-year result, Kogan revealed 97.4% gross sales growth, 126.2% gross profit growth and 164.2% net profit after tax (NPAT) growth. This gave the board the flexibility to increase the interim dividend by 113.3% to 16 cents.
The ASX dividend share has been struggling due to inventory issues, but it continued to report growth of customers and sales. Kogan.com customers jumped over 77% to 3.2 million whilst gross sales went up 47%. This could signify positive trends for the longer-term.
Broker Credit Suisse thinks the Kogan.com share price is a buy too with a price target of almost $18.
Looking to FY22, the Kogan share price is valued at 22x forward earnings with a projected FY22 grossed-up dividend yield of 4.2%.
