2 buy-rated ASX dividend shares with big fully franked yields

These dividend shares offer big fully franked yields…

Are you looking to add some top ASX dividend shares to your portfolio? Then you may want to look at the buy-rated ones listed below.

Here's why they could be top options for income investors next week:

boy giving thumbs up to $100 notes

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a retail group with a growing collection of popular footwear-focused store brands. These include 4 Workers, Glue Store, HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot.

Accent has been performing very strongly this year. This is being driven by the popularity of its brands, a favourable shift in consumer spending, strong online sales, and its store network expansion.

The good news is that the team at Bell Potter believe the company still has plenty of growth ahead of it. In light of this, it is recommending Accent as a buy with a $3.30 price target.

As for dividends, Bell Potter is forecasting fully franked dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.54, this represents fully franked yields of 4.6% and 4.8%, respectively, over the next couple of years.

Fortescue Metals Group Limited (ASX: FMG)

Another ASX dividend share to look at is this leading iron ore producer. This is because it is currently benefiting greatly from very strong prices for the steel making ingredient.

For example, at the end of last week the spot iron ore price was fetching over ~US$200 a tonne. And while Fortescue's lower grade product trades at a discount to the benchmark iron ore price, it is still materially more than Fortescue's cash cost guidance of US$13.50 to US$14.00 per wet metric tonne.

One broker that is positive on the mining giant is Macquarie. It is expecting the company to generate significant free cash flow in the near term, leading to very big dividends.

Macquarie is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. Based on the latest Fortescue share price of $25.25, this will mean fully franked yields of 13.6% and 9.7%, respectively.

Macquarie has an outperform rating and $27.00 price target on the miner's 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 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

a woman smiles widely as she leans on her trolley while making her way down a supermarket grocery aisle while holding her mobile telephone.
Dividend Investing

How many Coles shares do I need to buy for $1,200 of dividend income in 2027?

Coles is still a strong option for dividend income.

Read more »

Man putting coins in a wooden piggy bank next to piles of coins.
Dividend Investing

3 strong ASX dividend shares for income investors

Let's see why these shares could deserve a spot in your income portfolio.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

I'd buy 3154 shares of Soul Patts stock to build a $5,000 per year second income

This business is an incredible option for building a second income through dividends.

Read more »

A man thinks very carefully about his money and investments.
Bank Shares

Everything you need to know about the latest ANZ dividend

The bank’s latest dividend has just been announced.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

1 ASX dividend stock down 30% I'd buy right now

This ASX dividend stock looks very cheap to me!

Read more »

A group of people in business attire gather around a computer in an office environment with expressions of concern as they try to nut out the answer to a challenge they are facing.
Dividend Investing

Would your dividends survive a recession? I stress tested 5 popular ASX income shares to find out

Some dividends are safer than others. Here's what I found.

Read more »

Woman with spyglass looking toward ocean at sunset.
Dividend Investing

If I invest $20,000 in BHP shares, how much passive income will I receive in 2027?

Will BHP be a gold mine for dividends in 2027?

Read more »

Yield written on wooden blocks with a hand putting coins on top, with a plant and pen on the table.
Dividend Investing

The 5 ASX dividend shares I'd buy with yields above 6%

These ASX dividend shares have very attractive yields. I’d buy them today!

Read more »