2 ASX dividend shares with great yields to beat inflation

Here are two dividend shares with great yields…

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If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with great yields in the near term. This could potentially help offset the inflationary pressures that Australia is currently experiencing.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors is Accent. It is the owner of a seemingly ever-increasing portfolio of footwear focused store brands. Among its biggest are HYPEDC, Pivot, Platypus, Sneaker Lab, and The Athlete’s Foot.

Accent was severely impacted by COVID related disruptions and lockdowns during the first half. This led to the retailer reporting a 72% decline in net profit after tax to $14.8 million. And with management warning that COVID uncertainty remains in the second half, its shares have unsurprisingly come under significant pressure.

While this is disappointing, it could be a buying opportunity for patient income investors. For example, analysts at UBS are forecasting a big rebound in Accent’s profits and dividends in FY 2023.

UBS has pencilled in a fully franked dividend of 7 cents per share in FY 2022 and then 13 cents per share in FY 2023. Based on the current Accent share price of $1.56, this will mean yields of 4.5% and 8.3%, respectively.

The broker has a buy rating and $2.50 price target on the company’s shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that income investors might want to look closer at is this agricultural real estate investment trust (REIT).

Rural Funds owns a portfolio of high quality Australian agricultural assets that are leased to many of the largest industry players. These include JBS Australia, Select Harvests Limited (ASX: SHV), and Treasury Wine Estates Ltd (ASX: TWE).

These leases are on long term agreements and have fixed rental increases built into them. As a result, management has great visibility on its future earnings. This allows it to confidently target an inflation-busting 4% increase in its dividend each year.

In FY 2022, the company intends to increase its dividend by its annual target rate to 11.73 cents per share. It has also announced plans to pay a 12.2 cents per share dividend in FY 2023. Based on the current Rural Funds share price of $3.05, this will mean yields of 3.85% and 4%, respectively.

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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Accent Group and Treasury Wine Estates 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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