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

A little boy in flying goggles and wings rides high on his mum's back with blue skies above.
Opinions

Why I think now is a great time to buy Qantas shares for long-term passive income

Qantas shares are now trading on a fully franked dividend yield of 5.5%.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

Don't want to rely on your wage? Build a second income with these ASX shares

Dividend payments can supplement a wage, here are two top contenders for goal.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends

If you're looking for income, this might be just the thing.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

2 ASX dividend stocks Morgans rates as buys

Let's see what the broker is bullish on this month.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Here's how much I'd need to invest in BHP shares to generate a $100 monthly income

BHP is one of the ASX’s top dividend payers and could be a good option for income investors.

Read more »

Dividend Investing

These buy-rated ASX dividend shares offer 7% to 8% yields

Morgans is expecting some big dividend yields from these shares.

Read more »

Woman in bed rolls over to hit clock
Dividend Investing

14 ASX shares about to go ex-dividend

Stocks going ex-dividend include Flight Centre, Perenti, NRW Holdings, and Service Stream.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »