With 6%+ yields, here are 2 ASX dividend shares to consider buying now

Analysts think these high-yield dividend shares would be top options right now.

| More on:
Happy man holding Australian dollar notes, representing dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Income investors certainly are a lucky bunch. The Australian share market is filled to the brim with dividend-paying companies.

And while the average dividend yield usually sits at around 4%, some ASX dividend shares provide much juicier yields.

For example, the two shares listed below have been named as buys and tipped to offer yields greater than 6% this year and next. Here's what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be worth considering this month is Accent Group.

It is a market-leading digitally integrated retail and distribution business in the performance and lifestyle market sectors. Its main focus is footwear, with the company operating a large number of retail banners such as HypeDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot.

At the last count, Accent Group had a network of over 800 stores. It also had 35 websites, 821 points of distribution, and almost 10 million contactable customers. This makes it the clear leader in the market.

Bell Potter is a very big fan of the company and sees significant value in its shares at current levels. The broker has a buy rating and $2.50 price target on them. This implies potential upside of approximately 30% for investors over the next 12 months.

But the returns won't stop there. Bell Potter expects some very big dividend yields from its shares in the near term. It is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.92, this represents dividend yields of 6.8% and 7.6%, respectively.

APA Group (ASX: APA)

Another ASX dividend share that could offer big yields for income investors in the near term is APA Group.

It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets. This includes 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia, delivering half the nation's natural gas usage.

In addition, it owns or has interests in gas storage facilities, gas-fired power stations, and renewable energy generation. In total, the company owns or manages and operates a portfolio of assets valued at around $25 billion.

Analysts at Macquarie are positive on the company and have an outperform rating and $9.40 price target on its shares.

As for dividends, the broker believes the company's long run of dividend increases can continue. It is forecasting dividends per share of 56 cents in FY 2024 and then 57.5 cents in FY 2025. Based on the current APA Group share price of $8.39, this equates to 6.7% and 6.85% dividend yields, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

Here's how much passive income I'd get if I invested $20,000 in Westpac shares now

A $20,000 investment in Westpac shares could deliver some welcome additional passive income.

Read more »

Three women cruise along enjoying ice-creams in the sunshine.
Dividend Investing

Passive income powerhouses! 3 ASX shares I'd consider buying for rising dividends

Here are three ASX dividend shares that I think are worth considering today.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

Invest $10,000 in this ASX dividend stock for $550 per year in passive income

Big returns and passive income could be on the cards for investors according to Morgans.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Buy BHP and these ASX dividend shares

Analysts think these income options would be great picks this month.

Read more »

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.
Dividend Investing

Buy these excellent ASX 200 dividend shares for very juicy yields

Income investors might want to check out these buy-rated shares according to analysts.

Read more »

Happy woman holding $50 Australian notes
Dividend Investing

10 ASX shares that have raised dividends for a decade

Here's the list of 10 ASX dividend shares with an unbeatable track record.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

2 ASX dividend shares offering over 5% yield

Grab a cuppa, get comfy, and let’s dive into the exciting world of dividends Down Under.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone
Dividend Investing

Buy Telstra and these ASX dividend stocks now

Analysts think the telco giant and these stocks would be good options for income investors.

Read more »