2 high yield ASX dividend shares brokers love

Super Retail Group Ltd (ASX:SUL) and this high yield ASX dividend share could be quality options for income investors right now…
The post 2 high yield ASX dividend shares brokers love appeared first on The Motley Fool Australia. –

You’re certainly not alone if you’re fed up with the low interest rates on offer with savings accounts and term deposits. The good news is that you can overcome these low rates by investing in ASX shares that pay dividends.

But which ASX dividend shares should you buy? Two that brokers love right now are listed below. Here’s what you need to know:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is this mining giant. The Big Australian has been a strong performer over the last 12 months thanks to its solid production performance and favourable commodity prices.

In respect to the latter, the iron ore price has been a particularly positive performer. In fact, it recently broke through the US$200 a tonne level in recent weeks. This is materially higher than BHP’s cost of production, which means its iron ore operations are generating bumper free cash flows right now.

The good thing about this is that due to its strong balance sheet and generous dividend policy, the majority of this free cash flow is likely to end up in shareholders’ pockets.

One bullish broker is Macquarie. It currently has an outperform rating and $57.00 price target on its shares. It is also forecasting dividends per share of ~$3.46 and ~$2.93 over the next two years. Based on the current BHP share price of $48.27, this equates to fully franked yields of 7.3% and 6.2%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider buying is Super Retail. It is a diversified retail company with a collection of popular brands – Super Cheap Auto, BCF, Macpac, and Rebel. 

Like BHP, it is also on form in FY 2021. For example, during the first half of FY 2021, the company reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.  Underpinning this growth was solid like for like sales across the company, a favourable shift in consumer spending, and strong online sales. The latter increased 87% over the prior corresponding period to $237.4 million.

Pleasingly, its strong form has continued in the third quarter, setting the company up to deliver a stellar full year result in August.

Goldman Sachs is a fan of Super Retail. It has been impressed with its performance and recently reaffirmed its buy rating and $15.00 price target on its shares. The broker is also forecasting an 84 cents per share fully franked dividend in FY 2021 (including a special dividend). Based on the current Super Retail share price of $12.37, this represents a 6.8% yield.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Returns As of 15th February 2021

More reading

Why the BHP (ASX:BHP) share price is trading lower today
Why the Fortescue and BHP share prices are sinking this week

ASX 200 sinks, EML plunges, Appen soars

Should ASX iron ore producers worry as China plans to up its own production?

These iron ore miners are outperforming the BHP (ASX:BHP) share price in 2021

The post 2 high yield ASX dividend shares brokers love appeared first on The Motley Fool Australia.

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!