Accent Group Ltd (ASX:AX1) and this ASX dividend share offer investors above-average yields right now…
The post 2 ASX dividend shares with above-average yields appeared first on Motley Fool Australia. –
There are a good number of dividend shares for investors to choose from on the Australian share market.
Two that offer above-average yields are listed below. Here’s what you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is a footwear-focused retailer which owns retail store brands such as HYPE DC, Platypus, The Athlete’s Foot and Sneaker Lab. Although many retailers have struggled in 2020 because of the pandemic, Accent wasn’t one of them. Thanks largely to its in-demand brands and its growing online business, in FY 2020 the company posted a 7.5% increase in net profit after tax to $58 million.
One broker that is confident this positive form can continue is Morgan Stanley. It believes Accent is well-positioned for long term growth thanks to its store rollouts, strong online offering, and focus on active and casual wear. In light of this, it is expecting the company to increase its dividend to 9.4 cents per share in FY 2021. Based on the current Accent share price, this equates to a fully franked 5.5% dividend yield.
Another ASX dividend share with an above-average yield is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia, with a portfolio of 68 stores. In addition to this, seven of its properties have adjacent retail showrooms that are leased to other quality retailers. Like Accent, BWP was a positive performer in FY 2020. It reported an occupancy rate of 98% and generated annual rental income of $151.4 million.
Given the strength of the Bunnings business, a similarly positive result is expected from the real estate investment trust in FY 2021. Analysts at Ord Minnett, for example, have pencilled in an 18 cents per share distribution over the next 12 months. Based on the current BWP share price, this will mean a yield of 4.3% for investors.
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Returns As of 6th October 2020
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.