In the current economic environment, interest rates are at all-time lows. The current cash rate is sitting at just 0.1%, which is pretty much zero for all intents and purposes.
That means traditional ‘safe’ investments like savings accounts and term deposits aren’t offering anything close to the yields they used to. So, what are investors to do if they want to at least keep up with inflation? ASX dividend shares could be the answer.
There are more than a few dividend shares offering fully franked yields of 5% or more today. Here are two of them.
2 ASX dividend shares with fully franked yields of more than 5%
Telstra Corporation Ltd (ASX: TLS)
Telstra is our first ASX dividend share to check out today.
This ASX 200 telco has long been known for its income-producing qualities, and it’s no different today. Telstra has paid out an annual dividend of 16 cents per share, fully franked, for a few years now. Further, it has indicated that maintaining or even increasing this dividend is on the cards in 2022.
So, with this 16 cents per share payout, Telstra shares are currently offering up a dividend yield of 4.1% on recent pricing. That is a pleasing grossed-up dividend yield of 5.86% if you include the value of those full franking credits.
WAM Research Limited (ASX: WAX)
Another ASX share to check out today is the listed investment company (LIC) WAM Research.
This LIC invests in a portfolio of small and mid-cap shares with an industrial bent. It currently holds companies like Webjet Limited (ASX: WEB), Codan Limited (ASX: CDA) and Nextdc Ltd (ASX: NXT). WAM Research has amassed a reputation as a payer of hefty dividends over the past decade or so.
Its past two shareholder payments were 4.9 and 4.95 cents per share respectively. That gives this company a dividend yield of 5.63% on recent pricing. Gross that up with the full franking credits that WAM Research typically pays, and we get a gross yield of 8.04%.