2 high yield ASX dividend shares analysts rate as buys

These dividend shares could be top options for income investors…

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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:

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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.

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