Fortescue Metals Group Limited (ASX:FMG) and this ASX dividend share are expected to provide investors with attractive yields this year…
The post 2 ASX dividend shares with attractive 2021 yields appeared first on The Motley Fool Australia. –
Thankfully in this ultra-low interest rate environment, there are a large number dividend shares for investors to choose from on the Australian share market.
Two ASX dividend shares that could be top options for income investors are listed below. Here’s why they come highly rated:
Bravura Solutions Ltd (ASX: BVS)
The first dividend share to look at is Bravura. It is a leading wealth management and transfer agency software solution provider.
Bravura has a number of popular solutions that are being used by big financial institutions. This includes its key Sonata wealth management platform, the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.
These solutions have large addressable markets and appear to have positioned the company perfectly for growth once the pandemic passes.
One broker that is positive on the company is Goldman Sachs. It has a buy rating and $4.50 price target on its shares and is forecasting a 10.6 cents per share dividend in FY 2021. Based on the latest Bravura share price, this represents a 3.3% dividend yield.
Fortescue Metals Group Limited (ASX: FMG)
Another dividend share to consider is Fortescue. It is one of the world’s leading iron ore producers and looks perfectly placed to deliver another bumper profit result in FY 2021. This is thanks to its record shipments, ultra-low C1 production costs of US$12.74 per wet metric tonne, and the sky high iron ore price.
In respect to the iron ore price, the steel making ingredient rose 3% to US$165.29 a tonne overnight. With prices at this level, Fortescue is generating significant free cash flows from its operations.
Macquarie is expecting the majority of this to be returned to shareholders in the form of dividends. The broker has pencilled in a dividend of approximately $2.61 per share fully franked in FY 2021. Based on the current Fortescue share price, this equates to a massive 10.5% dividend yield.
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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 and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.