2 high-yield ASX shares I'd buy right now for dividends

These two stand out in my eye.

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Investors searching for passive income could do very well with high-yield ASX shares. In fact, one of the advantages of buying companies for dividends is that there is a second source of investment return other than capital gains – income.

And in a world of high inflation, high interest rates, and geopolitical instability – cash remains king in my view.

Here are two standout options to consider in the dividend debate: Bank of Queensland Ltd (ASX: BOQ) and Westpac Banking Corp (ASX: WBC). Let's take a look.

Why Bank of Queensland is a high-yield ASX share

BOQ serves around 1.4 million customers and holds a 2.73% share of the Australian residential mortgage market.

Bank of Queensland is currently trading at $5.93 per share, boasting a trailing dividend yield of 6.41% from dividends of 38 cents per share in the last 12 months.

This yield is among the highest in the ASX banking sector, making it an attractive option for income-focused investors, in my opinion.

Despite varying economic environments over the years, BOQ has maintained stable, robust dividend payouts. A $10,000 investment in BOQ stock today would yield approximately $660 annually based on its trailing dividend rate (no franking credits considered). If the dividend yield drops however – so too would this yield.

For comparison, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) – an ETF tracking the Australian benchmark index – currently pays dividends at a trailing yield of 3.59%.

Westpac – another top high-yield ASX share

Westpac is another high-yield ASX share worth noting. At the time of publication, its trailing dividend yield is 5.5%.

Westpac, one of Australia's "big four" banks, has a strong track record of paying solid, fully-franked dividends, making it a reliable choice for dividend-seeking investors, in my view.

The bank has also demonstrated resilience in a number of economic cycles, maintaining strong net interest margins along with the broad sector, according to my colleague Bernd. This performance, coupled with ongoing share buybacks, is a vote of confidence in my estimation.

If Westpac continues to pay dividends at the same yield of around 5.5%, a $10,000 investment would return around $560 in passive income annually (not considering any franking credits).


Both Bank of Queensland and Westpac offer attractive high yields for ASX investors. BOQ's 6.41% trailing yield and Westpac's 5.5% trailing yield could make them compelling options for those seeking strong, consistent dividends, in my view.

As a precaution – even though the banks are tipped to continue paying strong dividends moving forward, past performance is no guarantee of future results.

Motley Fool contributor Zach Bristow 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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