If you're looking for big dividend yields, then look no further. Listed below are two ASX dividend shares that brokers are tipping as buys with very generous yields.
Here's what you need to know about them:
MotorCycle Holdings Ltd (ASX: MTO)
The team at Morgans thinks that this leading motorcycle dealership and accessories company would be a great option for income investors right now.
Its analysts see significant value at current levels and highlight that MotorCycle Holdings "continues to screen too cheap on ~6.5x FY24F PE." The broker has an add rating and a $2.60 price target on its shares.
What about dividends? Well, Morgans is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.20, this implies juicy yields of 9.1%.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share that has been tipped to provide investors with big dividend yields is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, Thrills, and Worship brands.
Analysts at Morgans are also very positive on Universal Store. They see a combination of big gains and big yields on offer with its shares. And much like Motorcycle Holdings, the broker feels "UNI's attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."
Morgans currently has an add rating and a $4.25 price target on its shares.
As for dividends, it is expecting the retailer to pay fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.80, this will mean yields of 6.8% and 7.6%, respectively.
