2 high yield ASX dividend shares rated as buys

These ASX shares look set to pay their shareholders generous dividends in the near term…

| 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 interested in bolstering your portfolio with some dividend shares, then the two listed below could be worth considering.

Here's what you need to know about these ASX dividend shares:

blockletters spelling dividends bank yield

Image Source: Getty Images

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a fully integrated owner, manager, and developer of large format retail centres that has been performing very positively over the last 12 months. This has been driven by its exposure to the booming household goods sector and everyday needs.

Demand for tenancies has been robust, underpinning strong rental collections and a 6.5% increase in funds from operations (FFO) to $55.9 million during the first half. Positively, more of the same is expected in the second half.

Morgans has been pleased with the company's performance this year. Its analysts currently have an add rating and $3.12 price target on its shares.

In respect to dividends, the broker is forecasting a 17.4 cents per share distribution in FY 2021 and then a 17.7 cents per share distribution in FY 2022. Based on the latest Aventus share price, this represents 5.75% and 5.85% dividend yields, respectively.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is this mining giant. Thanks to its solid production performance, its diverse operations, and favourable commodity prices, the Big Australian has been a strong performer over the last 12 months.

Positively, with the iron ore price trading around the US$200 a tonne level and oil prices hitting two-year highs this week, BHP looks well-placed to deliver a record result in August. And thanks to its strong balance sheet and generous dividend policy, this is likely to lead to bumper dividends for investors in the near term.

Macquarie is bullish on BHP. It currently has an outperform rating and $57.00 price target on its shares. It is also forecasting dividends per share of ~$3.44 and ~$2.91 over the next two years. Based on the current BHP share price of $49.59, this equates to fully franked yields of 6.9% and 5.9%, 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.

More on Dividend Investing

Australian notes and coins symbolising dividends.
Dividend Investing

3 ASX dividend shares yielding 5%+ that still have growth potential

These shares are a great option for passive income seeking investors.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Dividend Investing

1 super cheap ASX dividend stock down 16% to buy and hold for decades

The stock was caught up in a sector-wide selloff earlier this month.

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Grow your dividends alongside your job earnings with these Australian stocks

These stocks are delivering rising payouts year after year.

Read more »

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

I'd buy this ASX dividend stock in any market

This business has a lot to offer income investors.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

3 of the best ASX dividend shares for income investors to buy

Income investors might want to check out these top shares.

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks
Dividend Investing

3 ASX dividend shares raising dividends like clockwork

Shareholders are getting regular payout growth from these stocks.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Dividend Investing

3 ASX dividend shares with yields over 3% today

You don't need to look far for income on the ASX right now.

Read more »

Two elderly people smiling with their fists pumping and with a cape on.
Dividend Investing

Why JB Hi-Fi shares are a retiree's dream

Retirees may want to go shopping for the shares of this business.

Read more »