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:

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:

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

Image source: Getty Images

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

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

Should you buy New Hope shares for passive income today?

New Hope reported on its upcoming passive income payout this morning.

Read more »

Happy dad watching tv with kids, symbolising passive income.
Dividend Investing

3 of the best ASX income stocks to buy now

These ASX companies generate strong cash flow that supports shareholder payouts.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

These businesses have solid dividend records and rising payouts.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

71% chance of RBA hike? These ASX dividend shares still beat rising interest rates

Big dividend yields are forecast for these dividend shares.

Read more »

Three women dance and splash about in the shallow water of a beautiful beach on a sunny day.
Share Market News

3 legendary ASX dividend shares worth a closer look

The companies all boast strong market positions and steady cash flow.

Read more »

Australian dollar notes and coins in a till.
Dividend Investing

How many Westpac shares do I need to buy for a $10,000 annual passive income?

Westpac shares have a lengthy track record of paying two fully franked dividends every year.

Read more »

Man with his arms spread wide in a field.
Dividend Investing

Why this ASX REIT is a retiree's dream

Looking for a reliable investment? I’d go for this one…

Read more »

A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.
Dividend Investing

Want to build a second income? I'd buy these ASX shares today

These businesses look like really appealing buys today.

Read more »