2 high yield ASX dividend shares to solve your income needs

If you’re struggling with low interest rates, then I would suggest you consider Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share…
The post 2 high yield ASX dividend shares to solve your income needs appeared first on Motley Fool Australia. –

dividend shares

If you’re struggling with the low interest rates on term deposits, then you might want to look to the share market.

The Australian share market is home to a large number of shares that are providing investors with superior yields.

But which ASX dividend shares should you buy today? Two that I’m a big fan of are listed below:

Telstra Corporation Ltd (ASX: TLS)

The first dividend share to buy is Telstra. I’ve been very impressed with the progress it is making with its T22 strategy and firmly believe that it has positioned it for a return to growth in the near future. Especially now the NBN headwind is easing and 5G internet has arrived. The latter looks likely to give its key mobile revenues a boost over the coming years. Combined with its rampant cost cutting and the simplification of its business, things are looking increasingly positive.

In addition to this, I’m optimistic that Telstra can avoid a dividend cut in FY 2021. This could be achieved if it switches its dividend policy to be based on its free cash flow rather than accounting earnings. If the company does make the switch, based on the current Telstra share price, it would offer investors a very generous 5.7% yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider buying is an exchange traded fund. The Vanguard Australian Shares High Yield ETF is invested in a total of 66 high yield shares. This means income investors are able to diversify their portfolio significantly through just a single investment. This is a big positive in my eyes. After all, diversity has proven to be very important during the pandemic due to dividend deferrals and suspensions.

Among its holdings you will find the big four banks, BHP Group Ltd (ASX: BHP), and Telstra. Based on the current Vanguard Australian Shares High Yield ETF share price, I estimate that it offers a FY 2021 dividend yield in the region of 4% to 5%.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

The post 2 high yield ASX dividend shares to solve your income needs appeared first on 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!