2 high yield ASX dividend shares named as buys

These dividend shares are tipped to reward shareholders handsomely…

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A smiling woman with a handful of $100 notes, indicating strong dividend payments

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Luckily for income investors during these low interest rate times, the Australian share market is home to a number of companies offering very generous yields.

Two that do just this are listed below. Here’s why they could be top options for income investors:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is this leading owner, manager, and developer of retail parks. Aventus has been performing very positively during the pandemic. This has been driven by its high weighting to household goods and everyday needs retailing, which have experienced strong and sustained consumer demand.

Things have been going so well that Aventus recently revealed that the value of its properties have increased by $254 million or 12% since the end of December. It also advised that it expects its earnings to grow 7% this year, compared to its prior guidance of 4% growth.

This went down well with analysts at Goldman Sachs, who retained their buy rating and lifted their price target to $3.27. The broker is also forecasting distributions per share of 16.7 cents, 18.85 cents, and then 20.4 cents between now and FY 2023. Based on the current Aventus share price, this represents yields of 5.2%, 5.9%, and 6.4%, respectively.

Mineral Resources Limited (ASX: MIN)

Another high yield ASX dividend share to consider is Mineral Resources. It is a mining and mining services company with exposure to iron ore and lithium.

Thanks to the sky high iron ore price, Mineral Resources has been tipped by analysts at Macquarie to reward shareholders with some big dividends over the next couple of years. It is for this reason that the broker currently has an outperform rating and $73.00 price target on the company’s shares.

Macquarie is expecting Mineral Resources to pay fully franked dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $51.64, this will mean fully franked yields of 6.4% and 5.9%, respectively, over the next two financial years.

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

Motley Fool contributor James Mickleboro has no position in any of the stocks 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 AVENTUS RE UNIT. 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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