ANZ (ASX:ANZ) and this ASX dividend share offer generous dividend yields

Check out these high yielding dividend shares…

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Are you building an income portfolio? If you are, you might want to look at these top ASX dividend shares.

Here's what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price may have been on fire this year, but it doesn't appear to be too late to invest for both capital returns and dividends.

According to a recent note out of Morgans, its analysts have retained their add rating and $34.50 price target on the banking giant's shares.

As for dividends, Morgans is forecasting fully franked dividends of $1.45 per share in FY 2021 and $1.65 per share in FY 2022. Based on the current ANZ share price of $28.21, this will mean yields of 5.1% and 5.85%, respectively, over the next couple of years.

Morgans believes the outlook for the banks is becoming increasingly positive. This is thanks to home loan growth, favourable credit spread movements, and lower than expected impairments. It also sees scope for further capital management from ANZ in the future given its surplus capital. This follows the recent announcement of a $1.5 billion on-market share buyback.

Rural Funds Group (ASX: RFF)

A second ASX dividend share to look at is Rural Funds. It is the owner of a portfolio of high quality Australian agricultural assets.

These properties are leased to some of the biggest players in the agricultural sector on long term tenancy agreements. And with these leases including periodic rental increases, Rural Funds has great visibility on its future earnings. This leaves it well-positioned to deliver on its target of 4% growth in its distribution each year.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. Based on the current Rural Funds share price of $2.53, this will mean a yield of 4.6%.

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 RURALFUNDS STAPLED. 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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