ASX dividend shares are known for paying outsized income to investors.
But, there's a significant difference between a dividend yield of 5% and something that pays more than 10%.
Sometimes yields can be mirages because they may be old yields that are about to be cut.
However, the two businesses below are predicted by experts to pay huge dividend yields in the next financial year.
So, let's have a look at the two ASX dividend shares that could pay beastly income.
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Best & Less Group Holdings Ltd (ASX: BST)
Best & Less is a retailer of apparel that aims to offer quality products at a good price. The company says that it has a vertical retail model, with 86% of sales from its own labels.
Best & Less suggests there is a market opportunity as customers migrate to 'value' products. Management believes the business is positioned to benefit from the current inflationary environment.
The ASX dividend share describes its baby products as a key driver of growth as it establishes long-term relationships based on "creditability and trust". As children grow, Best & Less can offer more products, lengthening the connection with those customers.
The company wants to grow its market share of baby, kids, and women's apparel. Best and Less is also aiming to increase its gross profit margin and store count.
According to Macquarie, the business could pay a grossed-up dividend yield of 18.7% in FY23.
Shaver Shop Group Ltd (ASX: SSG)
Shaver Shop is another ASX retail share that says it's the market leader in a growth sector. It's focused on premium products in DIY grooming, personal care, and hair and beauty appliances for men and women. It boasts that many key brands and products are exclusive to Shaver Shop. Exclusive products generate more than 50% of sales and 60% of gross profit.
The ASX dividend share has built a significant e-commerce presence. It says that around 35% of total sales are online, though it does have around 120 stores across Australia and New Zealand as well.
According to Shaver Shop, the Australia-New Zealand beauty and personal care market is expected to grow from approximately $10 billion to around $12 billion by 2026.
Hair cutting and men's shaver sales have returned to growth in the second half of FY22. Total sales were up 5.7% to 31 May 2022. In FY22, it's expecting to generate at least $16.25 million of net profit after tax (NPAT).
In terms of the dividend, Ord Minnett thinks that Shaver Shop is going to pay a grossed-up dividend yield of 14.7% in FY23 and that it's valued at seven times FY23's estimated earnings.
