The Australian share market is home to a large number of dividend payers. However, some offer yields that are greater than average at present.
For example, two high yield ASX dividend shares that are rated as buys are listed below. Here's what you need to know about them:
National Australia Bank Ltd (ASX: NAB)
The first ASX dividend share that could be a good option right now for income investors is this banking giant.
NAB appears well-placed to profit in the current environment thanks to its strong position in commercial banking. In fact, it is for this reason that Goldman Sachs recently reiterated its buy rating with a $35.41 price target.
The broker notes that NAB provides "the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term."
Goldman expects this to underpin attractive dividend yields from NAB's shares in the coming years. It is forecasting a $1.73 per share dividend in FY 2023 and then a $1.78 per share dividend in FY 2024. Based on the current NAB share price of $31.35, this will mean fully franked yields of 5.5% and 5.7%, respectively.
New Hope Corporation Limited (ASX: NHC)
This coal miner could be a dividend share to buy thanks to sky high coal prices.
A note out of Morgans this week reveals that its analysts have retained their add rating with a $7.00 price target.
Its analysts believe that New Hope will be positioned to pay a massive $1.20 per share in FY 2023. Based on the current New Hope share price of $5.16, this represents a whopping fully franked 23% dividend yield for investors.
But it may not even stop there with the returns. The broker has suggested that "plausibly +$1.5bn ($1.59ps) is available for distribution via the announced onmarket buyback and dividends."
Looking further ahead, while the broker is forecasting a reduction in New Hope's dividend to a fully franked 75 cents per share in FY 2024, this still equates to a sizeable 14.5% yield.
