2 high-yielding ASX 200 dividend shares

There are some S&P/ASX 200 Index (ASX:XJO) shares that have very high dividend yields and could be worth a look for income investors.

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Some S&P/ASX 200 Index (ASX: XJO) shares are expected to pay a high dividend yield to investors in 2021.

A few ASX 200 dividend shares are still struggling in this COVID-19 environment such as Sydney Airport Holdings Pty Ltd (ASX: SYD).

But there are others that are paying solid payments that equate to a pretty high yield such as:

Waypoint REIT Ltd (ASX: WPR)

As the name suggests, Waypoint is a real estate investment trust (REIT) that owns a portfolio of service stations across Australia. The vast majority of them are leased as Coles Group Ltd (ASX: COL) Express convenience stores.

It has 470 properties with a weighted average lease expiry (WALE) of 10.8 years, with 72% of them in metro locations and the other 28% in regional locations.

The aim of the ASX 200 share is to steadily increase its distributable earnings per security (EPS). It has successfully done this in each of the year's since it listed on the ASX. In FY20 its distributable EPS grew another 4.25% with minimal impact from COVID-19 (99.9% of rent was collected).

It has an annual management expense ratio of 0.30%, which is one of the lowest in the REIT sector.

Waypoint is expecting to grow its distributable EPS by another 3.75% in FY21 to 15.72 cents. That would equate to a distribution yield of 6.3%.

The business is looking to offload non-core assets at a premium. It has sold three metro assets through public auction for a combined price of $8.1 million, which was a 22.1% premium to the prevailing book value.

Waypoint is rated as a buy by the broker Morgans, with a price target of $2.92. The broker points out that almost all of the leases have a fixed 3% or higher annual rental increase which helps distributable profit growth. 

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the ASX 200 shares that is seeing elevated levels of demand after the onset of the COVID-19 pandemic.

Earlier on during COVID-19, there was strong demand for products that enabled customers to work, learn and be entertained at home.

But the strong retail environment has continued for many months beyond the initial lockdowns with government stimulus, low interest rates and redirected household expenditure.

Credit Suisse rates the JB Hi-Fi share price as a buy, with a price target of $57.39. The broker was impressed by the high level of sales in the third quarter of FY21. Credit Suisse believes there's a lot of demand still in the economy.

The broker is expecting the ASX 200 share to pay a FY21 dividend yield of 8% thanks to the strong earnings growth.

JB Hi-Fi said that in the third quarter of FY21, it saw total sales growth of 10.4% for JB Hi-fi Australia, 16% total sales growth for JB-Hi New Zealand and 5.8% sales growth for The Good Guys.

It said trading in April was also pleasing. However, it did acknowledge that it's now cycling against elevated sales growth from last year, though it's continuing to see elevated customer demand and strong sales growth rates over a two-year period.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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