2 high-yielding ASX 200 dividend shares

JB Hi-Fi and Super Retail could be two ASX dividend shares for FY22.

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In the S&P/ASX 200 Index (ASX: XJO) are a few ASX 200 dividend shares that are expected to pay high yields in FY22.

Businesses that have generous dividend payout ratios and reasonable valuations are likely to have attractive dividend yields.

Some businesses make an effort to reward shareholders with good cash payouts each year. COVID-19 has seen profit rise particularly strongly for some companies.

Here are two ASX 200 dividend shares to consider:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is a leading retailer that sells electronics and home appliances such as TVs fridges, phones, computers and so on through its network of JB Hi-Fi and The Good Guys stores.

FY21 was a strong year for the company, with earnings per share (EPS) growth of 67.5% to 440.8 cents per share. The board was able to increase the total dividend for FY21 by 51.9% to $2.87.

Management believe there are a number of advantages that the company has.

The first is scale, it says it’s the number one player in Australia with an opportunity for further consolidation. It can spread its investments across a large base and drive efficiencies.

Next, the ASX 200 dividend share has a low cost operating model. It has a high level of sales per square metre, enabling the company to offer low prices.

Supplier partnerships with global brands is another area of strength.

Store locations is the fourth advantage, which provide good foot traffic and are easily accessible.

The final advantage is its multichannel capability, where it can sell both online and offline. Its store network provides fast online fulfilment through delivery from the store or click and collect.

It’s currently rated as a buy by the broker Credit Suisse, with a price target of $53.66. Credit Suisse thinks JB Hi-Fi is going to pay a grossed-up dividend yield of 6.5% in FY22.

Super Retail Group Ltd (ASX: SUL)

Super Retail is one of the country’s leading retailers. It owns Supercheap Auto, Rebel, BCF and Macpac.

There was a consumer boom during FY21 for numerous reasons, including several impacts from COVID-19 effects. This helped the ASX 200 dividend share generate 22% sales growth to $3.45 billion, with online sales rising 43% to $415.6 million.

Segment earnings before interest and tax (EBIT) surged 80% in FY21 to $476.8 million. Normalised net profit after tax (NPAT) jumped 107% to $306.8 million.

Management pointed to the ability of the company to meet the online customer demand and shift in behaviour as an important reason for its result.

Whilst FY22 sales were down 14% in the first seven weeks, total online sales had increased another 62%. It also noted that the global supply chain conditions remain challenging.

It’s working on a number of alternative store formats, including the next generation of Supercheap Auto stores, Rebel rCX stores and BCF small format regional stores. It’s also going to continue invest in its digital capabilities and improve its delivery efficiencies.

In FY21 the ASX 200 dividend share paid a full year dividend of $0.88 per share.

It’s currently rated as a buy by Credit Suisse, with a price target of $14.41. The broker expects Super Retail to pay a grossed-up dividend yield of 6.2% in FY22.

Should you invest $1,000 in JB Hi-Fi right now?

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. 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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