2 ASX dividend shares with large yields and consistent payouts

JB Hi-Fi is one of the ASX dividend shares with a high yield and consistent payout.

| More on:
a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.

Image source: Getty Images

Key points

  • JB Hi-Fi and Pacific Current are two ASX dividend shares expected to pay big yields in FY22
  • JB Hi-Fi continues to see strong customer demand for its products, supporting profit
  • Investment manager Pacific Current is seeing net inflows. It’s also adding to its portfolio

There are some ASX dividend shares in Australia that offer both a high yield and have been consistent with their payouts.

Plenty of the ASX’s blue chips have cut their dividends in recent years, including Australia and New Zealand Banking Group Ltd (ASX: ANZ), Sydney Airport (ASX: SYD), and Transurban Group (ASX: TCL).

Dividends are certainly not guaranteed. But the below two options have been growing the dividend and could pay a high yield in FY22:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the biggest retailers in Australia (and New Zealand) with its JB Hi-Fi and The Good Guys businesses.

The retailer is currently rated as a buy by the broker Morgans, with a price target of $54.

JB Hi-Fi recently gave its second quarter sales update which showed that JB Hi-Fi Australia sales were up 1.9% year on year, New Zealand sales were down 3.4%, and The Good Guys sales went up 3.4%.

The ASX dividend share noted that sales momentum was strong throughout the first half of FY22, with continued heightened customer demand for both consumer electronics and home appliance products. Total half-year sales were down 1.6% year on year, but up 21.7% over a two-year period.

JB Hi-Fi noted that net profit is expected to be a bit lower in HY22, with net profit after tax showing a 9.4% drop to $287.9 million. However, net profit was still 68.8% higher over a two-year period thanks to the management of gross profit margins and “disciplined cost control”.

Morgans is expecting JB Hi-Fi to pay a FY22 annual dividend per share of $2.17. This translates to a grossed-up dividend yield of 6.2%.

Pacific Current Group Ltd (ASX: PAC)

Pacific describes itself as a multi-boutique asset management outfit that applies its strategic resources, including capital, institutional distribution capabilities, and operational expertise to help its investment partners excel.

At the end of September 2021, Pacific’s total funds under management (FUM) controlled by the boutique asset managers it’s invested in was $150.1 billion, an increase of 5.5%. Strong inflows at Victory Park, Roc, EAM and GQG Partners Inc (ASX: GQG) helped FUM grow.

Management was pleased with the breadth of that growth and expects it to continue “well into 2022”.

The ASX dividend share continues to expand its portfolio. A couple of weeks ago, it bought a 35% stake in Banner Oak Capital Partners, a private equity real estate business that had $5.7 billion of assets on its platform. The initial investment is US$35 million. Pacific will receive 35% of the management company’s earnings.

The Oak Capital Partners contribution is expected to add approximately 25% of Pacific Current’s FY21 underlying net profit before tax.

It’s currently rated as a buy by the broker Ord Minnett, with a price target of $10.30 – that’s 40% higher than where it is right now.

Ord Minnett thinks Pacific is going to pay a grossed-up dividend yield of 7.4% in FY22 and 8.3% in FY23.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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

Man holding different Australian dollar notes.
Dividend Investing

2 high quality ASX 200 dividend shares analysts have named as buys

Here are two dividend shares rated as buys...

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Dividend Investing

Top brokers name 3 ASX dividend shares to buy today

Top brokers have named 3 dividend shares they think are buys...

Read more »

A kid stretches up to reach the top of the ruler drawn on the wall behind.
Bank Shares

Has the ANZ dividend been growing?

The ASX bank's shares are well known for their big dividends but have tbey been growing recently? We take a…

Read more »

A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today
Dividend Investing

2 ASX dividend shares rated as buys by experts amid inflation volatility

BHP is one of the ASX dividend shares liked by brokers.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

I like APA as an ASX dividend share idea. Here’s why

APA has performed well as an ASX dividend share in my opinion.

Read more »

Three Argosy miners stand together at a mine site studying documents with equipment in the background
Resources Shares

What’s the outlook for Fortescue shares with Twiggy at the helm?

Andrew Forest stepped down as CEO of the ASX 200 iron ore giant in 2011.

Read more »

Dividend Investing

Analysts name 2 top ASX 200 dividend shares to buy now

Here are a couple of dividend shares paying big dividends...

Read more »

A boy in a green shirt holds up his hands in front of a screen full of question marks.
Resources Shares

Do Vulcan Energy shares pay dividends?

Vulcan Energy shares may be popular. But do they pay dividends like other ASX miners?

Read more »