ASX dividend shares are a popular way for passive-income seeking investors to earn extra money on the side.
There are a huge amount of great dividend-paying ASX companies out there. But the issue is that their yield will vary wildly, and therefore so will their payouts.
Major Australian blue chip companies usually pay around the 3-4% level because they're stable defensive assets.
Then you have your real estate investment trusts (REITs) and stable energy infrastructure or utility operators. These typically yield a little higher at around 6% because they carry slightly elevated risk.
Then there are your high yield shares which pay over 10%. ASX dividend shares which yield this high usually come with a lot more risk. That means they could be cyclical businesses which fluctuate significantly with market cycles, niche companies with strong cash conversion, or they have discounted share prices.
If you have the appetite for risk, high-yield shares could provide much higher returns.
But it can be tricky to work out which ones are the best to buy.
Here are two of my top high-yield ASX dividend shares, and they both pay a yield of over 10%.
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BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX)
YMAX is an ASX-listed exchange-traded fund (ETF) that gives its shareholders exposure to Australia's 20 largest blue-chip shares, rather than just one individual company.
The fund is heavily weighted into the financial sector, which accounts for 44.6% of its allocation at the time of writing. The materials sector is second, accounting for 23.4% of its allocation. Elsewhere, it also invests into the consumer discretionary, consumer staples, energy, industrials, real estate, communications and healthcare sectors.
YMAX also differs from a lot of other ASX dividend stocks above because it pays its shareholders on a monthly basis.
As of the 30th of June, YMAX has a 12-month gross distribution yield of 10.4%, and a net yield of 8.8%. The total franking level is 41.2%.
The ASX dividend share's next dividend is a 5 cents per unit payment to shareholders on the 18th of August. It has paid between 3.5 cents and 5 cents per share since it moved to monthly payouts in February this year.
GQG Partners Inc (ASX: GQG)
GQG is a global boutique asset management company focused on active equity portfolios. It offers investment advisory and portfolio management services for investors. Clients include pension funds, sovereign funds, wealth management companies, and individual investors.
The company is headquartered in Fort Lauderdale, Florida, GQG also has operations in New York, Seattle, London, Sydney, and other locations.
Like YMAX, GQG pays more regularly than a lot of other ASX dividend shares. The company has historically paid four unfranked shareholder dividends a year in March, June, September, and December.
The asset management business currently pays approximately 90% of its distributable profit to shareholders. It most recently paid an interim dividend of 3.4 cents per unit in June, unfranked, which translates into an annualised dividend yield of 15.47% at the time of writing.
