The Australian share market typically provides investors with an average dividend yield of 4%. However, income investors don't have to settle for that. Not when there are ASX shares offering vastly superior yields.
Here are two ASX shares with big forecast yields and bigger upside potential:
Charter Hall Retail REIT (ASX: CQR)
The first ASX share to consider for dividends is the Charter Hall Retail REIT. It is a supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company.
Citi is positive on the company due to its "defensive net property income growth."
The broker expects this to underpin dividends of 26 cents per share in both FY 2023 and FY 2024. Based on the current Charter Hall Retail REIT share price of $3.79, this will mean yields of almost 6.9% for both years.
Citi also sees plenty of upside for its shares with its buy rating and $4.50 price target.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX share that has been tipped as a buy is youth fashion retailer Universal Store.
Goldman Sachs is feeling very positive about the company's outlook. This is thanks to its expansion plans and exposure to younger consumers.
The latter are expected to be less impacted by higher interest rates and continue spending largely as normal. In fact, they could even spend more thanks to an increase to the minimum wage.
Goldman expects the company to be in a position to pay fully franked dividends of 27 cents in FY 2023 and then 34 cents in FY 2024. Based on the latest Universal Store share price of $4.90, this equates to yields of 5.5% and 6.9%, respectively.
Goldman has a buy rating and $8.05 price target on its shares.
