Insights

3 ASX dividend shares with yields over 4% right now

Commonwealth Bank of Australia (ASX:CBA) is one of three ASX dividend shares offering a fully-franked yield of 4% or greater today
The post 3 ASX dividend shares with yields over 4% right now appeared first on The Motley Fool Australia. –

little pig piggy banks falling from the blue sky, indicating a windfall of income from ASX dividend shares

Why should you pay attention to an ASX dividend share with a yield of at least 4% today? Two words: interest rates.

The Reserve Bank of Australia (RBA) has all-but promised us that the official cash rate will stay at its current record low of 0.1% until at least 2024.

That means that we can all expect lousy returns from any cash or fixed-interest investment until then. Thus, a 4% dividend yield from an ASX share could be a good way to escape this morass of low yields.

So here are 3 ASX dividend shares that offer grossed-up yields of 4% or greater on today’s pricing:

3 ASX dividend shares with a 4% yield or greater

Commonwealth Bank of Australia (ASX: CBA)

CBA, like all of the ASX banks, was hit hard in the coronavirus-induced recession last year. But it has also recovered rather well. CBA shares have risen more than 31% over the past 6 months. The prospect of returning dividends has driven a large part of this investor optimism.

Last month, CommBank announced an interim dividend of $1.50 per share. Together with the mid-pandemic dividend of 98 cents last year, that gives CBA shares a trailing dividend yield of 2.88%, or 4.11% grossed-up with full franking.

However, if we annualise the most recent payout of $1.50 (which might get us a more accurate picture of what is to come), we get a potential yield of 3.49%, or 4.98% grossed-up.

Rio Tinto Limited (ASX: RIO)

Mining giant Rio was one of the companies that emerged from last year’s recession largely unscathed. Investors can probably thank robust iron ore prices for that.

The record high commodity prices (especially iron ore) we have seen in recent months has enabled Rio to shovel cash out the door. Despite the company’s shares rising more than 25% over the past 12 months, Rio shares currently offer a trailing dividend yield of 5.55%, or a healthy 7.93% grossed-up with Rio’s full franking.

Coles Group Ltd (ASX: COL)

The Coles share price has not had some of its best few months recently. In fact, this grocery giant is still down around 13% year to date.

But, as enthusiastic dividend investors know, lower share prices mean higher dividend yields. Especially since Coles hiked its last dividend by 10%.

On current pricing, Coles’ dividend is worth a yield of 3.79%. That’s 5.41% grossed-up with full franking. It also looks pretty good against its arch-rival Woolworths Group Ltd (ASX: WOW) right now, which has only got a 2.49% yield on the table.

Where to invest $1,000 right now

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.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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

The post 3 ASX dividend shares with yields over 4% right now 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!