2 quality ASX dividend shares with 6%+ yields

Westpac Banking Corp (ASX:WBC) and this ASX dividend share offer investors yields of 6% or more. Here’s why they could be buys…
The post 2 quality ASX dividend shares with 6%+ yields appeared first on The Motley Fool Australia. –

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With the interest rates on term deposits falling to ultra low levels, it is becoming very difficult for investors to generate a sufficient passive income.

Fortunately, there are a good number of dividend shares that can replace your term deposits and provide you with generous yields.

Two to consider are listed below. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

BHP is one of the world’s largest miners with a portfolio of world class and low cost operations across the globe.

It looks well-placed to deliver a very strong result in FY 2021 thanks to the stellar rise in iron ore and copper prices over the last 12 months. In addition to this, with oil prices climbing to their highest levels since February on Friday, things are looking a lot more positive for the company’s petroleum business.

Analysts at Macquarie are positive on the company and have an outperform rating and $46.00 price target on its shares. The broker is forecasting a fully franked ~$3.85 per share dividend in FY 2021. Based on the current BHP share price, this represents an 8.2% dividend yield.

Westpac Banking Corp (ASX: WBC)

Another ASX share expected to provide investors with a generous dividend yield in 2021 is Westpac.

After a seriously tough year in 2020, things are looking a lot more positive for the banking giant in 2021. This is thanks to falling COVID loan deferrals, an improving housing market, the relaxing of responsible lending rules, and APRA allowing unrestricted dividend payments.

It is thanks to the latter that analysts at Morgans are now forecasting a $1.24 per share fully franked dividend from the bank in FY 2021. Based on the current Westpac share price, this represents a 6.1% yield. Morgans has an add rating and $23.50 price target on its shares.

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Returns As of 6th October 2020

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 quality ASX dividend shares with 6%+ yields appeared first on The Motley Fool Australia.

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