2 ASX utility shares with attractive dividend yields

Don't ignore utility shares in your search for decent yield.

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I don't often hear too many ASX income investors chasing dividend yield discuss utility shares in their search for attractive payouts these days. Perhaps that's got something to do with utility kingpin AGL Energy Limited (ASX: AGL)'s rather horrid recent history of heavy dividend cuts that investors have had to endure.

But one rotten apple (perhaps an unfair exaggeration regarding AGL) doesn't necessarily spoil the barrel in this case.

So today, let's talk about two ASX utility shares that I think offer attractive dividend yields to income investors right now.

2 ASX utility shares offering big dividend yields today

Origin Energy Ltd (ASX: ORG)

Chances are you've at least heard of energy generator and retailer Origin, even if you aren't one of its millions of customers.

In 2021, Origin was something of a dividend pauper, with the company funding just 25 cents per share in dividend payouts. But over 2023, Origin has managed to increase these investor paycheques to an annual total of 36.5 cents per share. What's more, these dividends came with full franking credits attached for the first time in years.

While AGL shares are today offering a dividend yield of just over 3%, Origin shares are far more generous, with a trailing yield of 4.33% currently on the table. Origin has been increasing its dividend payouts at a healthy clip for the past few years too.

Duxton Water Ltd (ASX: D2O)

Moving onto another ASX utility share in Duxton Water. Duxton is not a company with the same sorts of recognition as Origin. It owns a portfolio of water rights and entitlements across Australia. It buys up water usage rights and then on-sells them to farmers or businesses that need extra water.

As to be expected in a La Nina period, the Duxton Water share price hasn't done much over the past year. However, as my Fool colleague Tristan recently posited, that could change going forward, with the imminent onset of a new El Nino weather pattern.

Today, Duxton Water offers a trailing dividend yield of 4.28%, which typically comes fully franked too. This company has managed to increase its annual dividends every year since 2018, which bodes well for future income. Particularly if its water assets become more valuable going forward.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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