2 high yield ASX dividend shares analysts rate as buys

These dividend shares could be top options for income investors…

| More on:

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

If you're looking for big dividends, then look no further. The two ASX dividend shares below have been tipped by analysts to provide investors with yields greater than 6%.

Here's what you need to know:

Happy young man and woman throwing dividend cash into air in front of orange background.

Image source: Getty Images

Adairs Ltd (ASX: ADH)

The first high yield ASX dividend share to look at is Adairs. It is a leading homewares and home furnishings retailer in the ANZ market. It has a growing presence both in retail parks across Australia and online with its Adairs and Mocka brands.

Thanks to its strong market position, the booming housing market, and a redirection in consumer spending, Adairs has been a very positive performer this year. This led to a very strong first half result, with more of the same forecast in the second half.

The team at Goldman Sachs are very positive on Adairs. They have a buy rating and $4.80 price target on the company's shares.

The broker is also forecasting fully franked dividends per share of 26 cents in FY 2021, 25.1 cents in FY 2022, and then 26.8 cents in FY 2023. Based on the current Adairs share price of $4.22, this will mean yields of 6.15%, 5.9%, and 6.35%, respectively.

BHP Group Ltd (ASX: BHP)

Another high yield ASX dividend share to consider is BHP. This mining behemoth could be a top option for income investors that are happy to invest in the resources sector.

Australia's largest miner has a diverse portfolio of world class operations across a number of commodities. This includes petroleum, copper, nickel, and iron ore. And thanks to favourable prices and its low operating costs, the company is currently generating significant free cash flow.

The team at Macquarie expect this to underpin very generous dividend payments in the near term. The broker is forecasting fully franked dividends per share of approximately $3.71 in FY 2021 and then $3.63 in FY 2022. Based on the latest BHP share price of $52.52, this will mean yields of 7% and 6.9%, respectively.

Macquarie has an outperform rating and $60.00 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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

2 ASX shares with dividend yields above 8%

Looking for big passive income? These are two great options.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

3 of the best dividend ASX ETFs right now

These funds offer yields over 4%.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget CBA shares! Buy these ASX dividend shares instead for passive income

CBA would not be my first pick for passive income. Here’s why…

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

2 Australian dividend stars that still offer a good price

Major upside and great dividend yields are on offer here.

Read more »

Female in elegant outfit smiling and gesturing victory with hands.
Dividend Investing

1 ASX dividend stock down 50% I'd buy today

Here's what the experts are tipping next from this ASX dividend stock.

Read more »

a man in a business suit looks at a map of the world above a line up of oil barrels with a red arrow heading upwards above them, indicting rising oil prices.
Dividend Investing

If the oil price remains above US$100, Woodside shares could be raining dividends before Christmas

Surging oil prices are no fun at the petrol station, but they could be a boon for upcoming Woodside dividends.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

Should you buy New Hope shares for passive income today?

New Hope reported on its upcoming passive income payout this morning.

Read more »

Happy dad watching tv with kids, symbolising passive income.
Dividend Investing

3 of the best ASX income stocks to buy now

These ASX companies generate strong cash flow that supports shareholder payouts.

Read more »