Here are 2 ASX dividend shares with attractive yields

These yields are much better than term deposits…

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

Image source: Getty Images

Although there is talk of rate increases coming sooner than anticipated, we’re still talking years before they reach normal levels again. And who knows what might happen between now and then.

In light of this, dividend shares look likely to remain a great way to generate a passive income. With that in mind, here are two ASX dividend shares that offer attractive yields:

Accent Group Ltd (ASX: AX1)

Accent Group is a retail conglomerate with a focus on the leisure footwear market. It has been growing at a solid rate over the last few years thanks to the popularity of its store brands, its network expansion, and strong demand. This has continued in FY 2021, with Accent reporting a 6.6% increase in first half sales to $541.3 million and a 57.3% increase in net profit after tax to $52.8 million.

Bell Potter appears confident its growth will continue and is forecasting dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the current Accent share price of $2.71, this will mean fully franked yields of 4.3% and 4.5%, respectively. Bell Potter has a buy rating and $3.30 price target on the company’s shares.

BWP Trust (ASX: BWP)

BWP is a retail property company with a focus on warehouses. Almost all the company’s properties are leased to home improvement giant Bunnings Warehouse. For example, at the end of the first half, Bunnings was renting 68 of BWP’s 75 properties. This has proven to be a successful strategy, with BWP growing its rental income and distribution at a solid rate over the last few years.

Pleasingly, the company has been on form again this year and revealed plans to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.33, this equates to an attractive 4.2% dividend yield.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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