Insights

2 ASX dividend shares that could be buys with yields above 5%

Accent Group is one of the ASX dividend shares considering for income.
The post 2 ASX dividend shares that could be buys with yields above 5% appeared first on The Motley Fool Australia. –

There are a handful of ASX dividend shares that could make exciting options for income over the longer-term.

These are companies that have attractively high dividend payout ratios and are expecting to generate higher operating profit as times goes on.

The two names below could be effective options to boost the income yield of a portfolio:

Charter Hall Long WALE REIT (ASX: CLW)

This diversified real estate investment trust (REIT) is currently rated as a buy by the broker Citi with a price target of $5.68.

The broker thinks that Charter Hall Long WALE REIT could beat its own FY22 guidance when considering the acquisitions it made during FY21 which will contribute a full 12 months of earnings as well as any new acquisitions it makes during FY22. Citi is attracted to the ASX dividend share’s defensive income and reliable tenants.

In FY21, Charter Hall Long WALE REIT saw operating earnings of $159 million, this was 29.2 cents per unit – an increase of 3.2% on the prior corresponding period. This is what funded a 3.2% increase of the distribution to 29.2 cents per unit.

Strong property transactions helped elevate the value of the REIT’s own portfolio by 12.1%, or $523 million. This lifted the net tangible asset (NTA) value per unit by 16.8% to $5.22.

It has a very long-term tenant base. At 30 June 2021, its portfolio’s weighted average lease expiry (WALE) was 13.2 years, which the REIT says provides long-term income security.

For FY22, the ASX dividend share has provided guidance of FY22 operating earnings per security (EPS) growth of no less than 4.5%. That means the current Charter Hall Long WALE REIT share price offers a yield of at least 5.7%.

Accent Group Ltd (ASX: AX1)

Accent is a large shoe retailer in Australia and New Zealand. It operates retailers like The Athlete’s Foot and also has exclusive distribution partnerships for a number of global brands into the local market including Vans, Skechers, Dr Martens and CAT.

FY21 saw a lot of growth for Accent as well as rising profit margins. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19.3% to $242 million, earnings before interest and tax (EBIT) grew by 32.1% to $124.9 million and net profit after tax (NPAT) grew 38.6% to $76.9 million.  

Online sales growth has been a feature for Accent since the start of the COVID-19 pandemic. FY21 saw total online sales rise by 48.5% to $209.9 million.

The ASX dividend share also said that it opened 90 new stores in FY21, whilst closing seven where required rent outcomes could not be achieved. Management say that new stores continue to “perform strongly” on more favourable rents than the existing portfolio.

Accent’s total dividends for FY21 amounted to 11.25 cents per share, up 21.6%, reflecting the trading result.

Lockdowns have hurt sales in the first few weeks of FY22, though digital sales growth is offsetting some of the pain.

According to Commsec, Accent is going to pay a grossed-up dividend yield of around 6% in FY22.

The post 2 ASX dividend shares that could be buys with yields above 5% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Accent right now?

Before you consider Accent, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Accent wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 highly-rated ASX dividend shares named as buys

Top broker tips Accent (ASX:AX1) share price to rise 33%
2 quality ASX dividend shares rated as buys this month

2 ASX dividend shares that just delivered even bigger payouts

The Accent (ASX:AX1) dividend has lifted by 22%

Motley Fool contributor Tristan Harrison 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!