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

These dividend shares offer big fully franked yields…

| More on:
boy giving thumbs up to $100 notes

Image source: Getty Images

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

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:

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 sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Opinions

3 top income-focused ASX shares to buy before April

I'd bolster my income by buying these dividend-payers before the next month rolls around.

Read more »