These ASX dividend shares offer good yields…
The post 2 top ASX dividend shares with good yields appeared first on The Motley Fool Australia. –
Although the outlook for interest rates is improving, it looks likely to be some time until rates rise to a sufficient level for income investors. In light of this, dividend shares could remain very important for income investors for a little while to come.
With that in mind, here are two dividend shares that offer good yields:
BWP Trust (ASX: BWP)
The first dividend share to look at is BWP. It is a commercial property company and the largest owner of Bunnings Warehouse sites in Australia.
Thanks to strong demand for hardware products and Bunnings being able to open during lockdowns, the hardware giant has been a positive performer over the last couple of years. This has allowed BWP to collect rent largely as normal during the entirety of the pandemic.
In FY 2021, BWP paid was able to pay shareholders a 18.29 cents per unit distribution. It also plans to pay a similar distribution in FY 2022. Based on the current BWP share price of $3.96, this will equate to a 4.6% dividend yield.
National Storage REIT (ASX: NSR)
Another dividend share to look at is National Storage. It is one of the ANZ region’s largest self-storage operators. It has a portfolio of over 210 centres providing tailored storage solutions to over 85,000 residential and commercial customers.
As with BWP, National Storage was on form in FY 2021. It delivered a 28% increase in underlying earnings to $86.5 million. This was driven by both organic growth and the benefits of acquisitions. This allowed the company to pay a full year distribution of 8.2 cents per share.
Management is guiding to 10% earnings growth in FY 2022. If it grows its dividend by the same margin, this will mean 9.02 cents per share. Based on the current National Storage share price of $2.48, this will mean a yield of 3.6%.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.