Insights

These ASX dividend shares offer 4.5%+ dividend yields

BHP Group Ltd (ASX:BHP) and this ASX dividend share offer investors yields that are far greater than term deposits…
The post These ASX dividend shares offer 4.5%+ dividend yields appeared first on Motley Fool Australia. –

Close up of hands holding US bank notes

Times really are hard for income investors following a series of cash rate cuts over the last few years.

At present, a 60-month term deposit from Commonwealth Bank of Australia (ASX: CBA) will yield just 0.70% per annum on amounts of $50,000 or greater.

This means that a $50,000 investment will provide investors with interest of just $350 per year.

The good news is that the Australian share market is home to a large number of companies that offer far greater yields for investors.

Two ASX dividend shares with yields above 4.5% are listed below:

BHP Group Ltd (ASX: BHP)

This mining giant is the owner of a collection of world class, low cost assets which are generating significant free cash flows. This is certainly the case at the moment thanks to high iron ore and copper prices. And given the company’s penchant for returning excess free cash flow to shareholders, this bodes well for dividends in FY 2021.

In fact, analysts at Macquarie are forecasting that BHP will pay a ~$2.80 per share fully franked dividend this year. Based on the current BHP share price, this would mean a very generous 7.8% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused property group that owns a large number of properties across several agricultural sectors. These high quality properties are leased on long term agreements to some of the biggest operators in the industry such as wine giant Treasury Wine Estates Ltd (ASX: TWE). At the end of FY 2020, Rural Funds had a weighted average lease expiry (WALE) of 10.9 years.

And with these leases having rental increases built into them, the company has great visibility on its future earnings. This means it can provide distribution guidance to investors even during these volatile times. In FY 2021 the company intends to increase its distribution to 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.6% 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.

Click Here For Your Free Stock Report

Returns As of 6th October 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 RURALFUNDS STAPLED and Treasury Wine Estates 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 These ASX dividend shares offer 4.5%+ dividend yields 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!