These high yield ASX dividend shares could be buys

These shares have been tipped to provide investors with big yields…

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If you're wanting to boost your portfolio with some high yield dividend shares, then the two listed below could be worth considering.

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

BHP Group Ltd (ASX: BHP)

If you're not opposed to investing in the resources sector, then the Big Australian could be a top option. Especially given its high quality, low cost, and diverse operations and favourable commodity prices.

As readers will no doubt be aware, the iron ore price has been on fire over the last 12 months and is currently trading within sight of record highs. In addition to this, oil prices have just hit three-year highs and have been tipped to keep climbing.

All in all, based on BHP's cost guidance, it is generating significant free cash flow based on current spot prices. And given the strength of its balance sheet, this bodes well for dividends in the near term.

Analysts at Macquarie are very positive on BHP and are expecting a record second half result in August. The broker currently has an outperform rating and $63.00 price target on its shares.

As for dividends, it is forecasting dividends of ~$4.05 per share in FY 2021 and ~$3.68 per share in FY 2022. Based on the current BHP share price of $48.22, this will mean fully franked yields of 8.4% and 7.6% over the next two years.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Supercheap Auto brands.

Super Retail's businesses have been performing particularly positively in FY 2021 thanks to a favourable redirection in consumer spending. With international travel off the cards, consumers have been spending heavily in other categories, leading to stellar sales and profit growth.

For example, during the first 44 weeks of FY 2021, the company's like for like sales were up 28% over the prior corresponding period. In addition, Super Retail's elevated gross margin remained stable since the end of the first half.

Goldman Sachs is positive on Super Retail and is tipping it to reward shareholders with a special dividend this year. It is forecasting an 84 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price of $12.74, this represents a 6.6% yield.

Goldman Sachs currently has a buy rating and $15.00 price target on its shares.

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 owns shares of and has recommended Super Retail Group Limited. 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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