Here are 3 ASX dividend shares with grossed-up yields over 5%

Here are 3 dividend shares offering yields over 5%…

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Finding an ASX dividend share offering a yield of 5% or greater is no mean feat. With many ASX dividend payers still recovering from the income drought that so defined 2020, sustainable yields at that kind of level are not common. But they are also not impossible to find. So here are 3 such shares that at least offer trailing dividend yields of more than 5% right now, when grossed-up with franking credits.

3 ASX dividends with fully franked yields over 5%

Coles Group Ltd (ASX: COL)

Coles was one of the few ASX 200 shares that managed to get through 2020 without cutting its dividend. Not only that, but Colas actually dialled up its shareholder payouts in 2020 and 2021.

2020 saw the grocery giant fork out 57.5 cents per share in dividends, which was exceeded by last year’s total of 61 cents per share. That gives Coles a trailing dividend yield of 3.74% on current pricing, which, grossed-up with the full franking on offer, comes out at 5.34%.

WAM Capital Limited (ASX: WAM)

Listed Investment Company (LIC) WAM Capital is next up. WAM Capital is a LIC that only invests in other ASX shares and companies. It tends to focus on the small to mid-cap part of the market, with current holdings like Brickworks Limited (ASX: BKW) and Life360 Inc (ASX:360). It has also been making some full-scale acquisitions in recent months too.

WAM Capital has also kept its dividend streams consistent over the past few years. It has paid an annual dividend of 15.5 cents per share since 2018. At today’s pricing, that gives WAM Capital a trailing yield of 6.95%. With WAM’s full franking, that grosses-up to a healthy 9.93%.

Telstra Corporation Ltd (ASX: TLS)

Telco Telstra is our final ASX dividend share to check out today. This telco has pretty much had a reputation as a strong income payer ever since its ASX debut back in the late 1990s. That’s despite the infamous dividend slashing of 2017.

But since 2019, Telstra has consistently forked out 16 cents per share in annual dividends. And that includes both 2020 and 2021. On today’s pricing, that gives Telstra a trailing yield of 3.88%, which grosses-up to 5.54% with Telstra’s full franking credits.

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Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Life360, Inc. The Motley Fool Australia owns and has recommended Brickworks, COLESGROUP DEF SET, and Telstra Corporation 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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