If you're an income investor on the lookout for new investment options, then you might want to check out the two high-yield ASX dividend shares listed below.
Both of these shares are buy-rated and expected to offer very attractive dividend yields. Here's what you need to know:
ANZ Group Holdings Ltd (ASX: ANZ)
If you don't have exposure to the banking sector, then Goldman Sachs thinks ANZ would be the way to do it.
Its analysts recently upgraded the big four bank's shares to a buy rating with a $27.38 price target.
Goldman believes that the company's institutional business will be a key driver of outperformance in the tough operating environment. It commented:
Institutional is ANZ's largest division, representing 44%/33% of Group RWAs/revenues, and the division's 1H23 PPOP RoRWA increased to 2.2%, from a 2H16 trough of 1.2%. Our assessment of the profitability of this division concludes that these return improvements are largely sustainable.
In respect to dividends, the broker expects fully franked dividends per share of $1.62 in both FY 2023 and FY 2024. Based on the current ANZ share price of $24.36, this will mean dividend yields of 6.65%.
Super Retail Group Ltd (ASX: SUL)
Another high-yield ASX dividend share that could give you a passive income boost is Super Retail.
It is the retail company responsible for the BCF, Macpac, Rebel, and Super Cheap Auto brands.
Bell Potter remains positive on the retailer in the current environment and has a buy rating and a $14.50 price target on its shares.
The broker is positive because it believes Super Retail is well-placed to manage the consumer slowdown. It said:
Overall, we think Super Retail is in a very solid position to manage the slowdown in the consumer environment given its excellent market positions in Auto and Sports and relatively low cyclicality of these categories.
As for dividends, Bell Potter is forecasting fully franked dividends per share of 77 cents in FY 2023 and then 72 cents in FY 2024. Based on the current Super Retail share price of $11.88, this will mean yields of 6.5% and 6.1%, respectively.
