2 ASX dividend shares with attractive yields

Transurban Group (ASX:TCL) and this ASX dividend share could be good options for income investors…

| More on:
Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

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

If you're looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Here's what you need to need to know about them:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to look at is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets. These properties are leased to some of the biggest players in the agricultural sector on long term agreements.

The great thing about these leases is the rental increases built into them. This means the company is well-positioned to grow its rental income a consistently solid rate over the next decade. This in turn means Rural Funds is well-placed to deliver on its distribution growth target of 4% per annum.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. This will be up 4% on FY 2021's distribution. Based on the current Rural Funds share price of $2.47, this will mean a yield of 4.75%.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is Transurban. It is one of the world's leading toll road operators, with a number of important roads across Australia and North America.

Although the pandemic has impacted traffic volumes, particularly on roads connecting to airports, there has been a notable improvement in 2021 as vaccines roll out. This is likely to continue improving as people become more mobile and airports become busy again.

Ord Minnett is positive on the company and is expecting its distribution to rebound strongly in FY 2022. It is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. Based on the latest Transurban share price of $13.90, this will mean forward yields of 2.7% and 4.2%, respectively.

The broker has a buy rating and $16.00 price target on the company's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Transurban Group. 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

rising gold share price represented by a green arrow on piles of gold block
Dividend Investing

1 Australian dividend stock quietly crushing the ASX today

The ASX 200 dividend stock has soared 38% since early October.

Read more »

Miner standing in front of a vehicle at a mine site.
Dividend Investing

Here is the South32 dividend forecast to 2026

Let’s dig into the potential payouts.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Dividend Investing

What kind of dividends can you expect from Graincorp shares in 2024?

Graincorp investors might not be as lucky this year as they were in 2023...

Read more »

Two laughing male executives wearing dark suits chat across a timber lunch room table while one of them holds up his phone to show information.
Dividend Investing

Where I'd invest $30,000 in ASX shares for passive income

I think stocks are all strong ideas for dividends.

Read more »

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

Own Challenger shares? There's cash coming your way today

Some owners of this stock will get a nice paycheque today.

Read more »

Man looking amazed holding $50 Australian notes, representing ASX dividends.
Dividend Investing

3 ASX dividend shares to buy for a passive income boost

Analysts think these income options could be top picks for investors looking for an income boost.

Read more »

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

ASX 200 investors, have you grabbed your share of the coming $34 billion dividend windfall?

ASX 200 investors can benefit from high yielding stocks that often come with franking credits.

Read more »

Workers inspecting a gas pipeline.
Dividend Investing

1 ASX dividend stock down 30% to buy right now

I think this ASX share could pipe in some attractive returns.

Read more »