These shares offer generous yields…
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If you’re trying to find a way to overcome low interest rates, then you might want to look at the Australian share market.
This is because there are a large number of shares that pay generous dividends each year. Two such shares are listed below. Here’s what you need to know about them:
BWP Trust (ASX: BWP)
The first ASX dividend share to look at is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 warehouses leased to the hardware giant.
BWP has been a positive performer in 2020 and 2021 despite the pandemic. This has been driven largely by the quality of its tenancies. With Bunnings Warehouse reporting stellar sales growth, BWP has been able to collect rent as normal. It has even seen the value of its properties increase strongly during this time.
In light of this, the company is expecting to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.26, this equates to an attractive 4.3% 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 with a portfolio of over 200 centres.
And while 200 centres may sound like a lot, management still sees plenty of room to grow its footprint in the highly fragmented self-storage market in the future.
So much so, it recently raised $325 million from investors via a capital raising. These funds will be used to strengthen its balance sheet and replenish its investment capacity. If management can deploy these funds successfully, it could be supportive of further solid earnings and dividend growth in the coming years.
Analysts at Ord Minnett are expecting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.02, this equates to yields of 4% and 4.25%, respectively.
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Returns As of 15th February 2021
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.