Thankfully in this ultra-low interest rate environment, there are a large number dividend shares for investors to choose from on the Australian share market.
Two ASX dividend shares that could be top options for income investors are listed below. Here’s why they come highly rated:
Bravura Solutions Ltd (ASX: BVS)
The first dividend share to look at is Bravura. It is a leading wealth management and transfer agency software solution provider.
Bravura has a number of popular solutions that are being used by big financial institutions. This includes its key Sonata wealth management platform, the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.
These solutions have large addressable markets and appear to have positioned the company perfectly for growth once the pandemic passes.
One broker that is positive on the company is Goldman Sachs. It has a buy rating and $4.50 price target on its shares and is forecasting a 10.6 cents per share dividend in FY 2021. Based on the latest Bravura share price, this represents a 3.3% dividend yield.
Fortescue Metals Group Limited (ASX: FMG)
Another dividend share to consider is Fortescue. It is one of the world’s leading iron ore producers and looks perfectly placed to deliver another bumper profit result in FY 2021. This is thanks to its record shipments, ultra-low C1 production costs of US$12.74 per wet metric tonne, and the sky high iron ore price.
In respect to the iron ore price, the steel making ingredient rose 3% to US$165.29 a tonne overnight. With prices at this level, Fortescue is generating significant free cash flows from its operations.
Macquarie is expecting the majority of this to be returned to shareholders in the form of dividends. The broker has pencilled in a dividend of approximately $2.61 per share fully franked in FY 2021. Based on the current Fortescue share price, this equates to a massive 10.5% dividend 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
- Is it better to buy 2020’s best or worst ASX shares?
- Will the Fortescue (ASX:FMG) share price double again in 2021?
- 5 things to watch on the ASX 200 on Monday
- Highlights from the ASX 200’s best ever December quarter
- The 5 best performing ASX 200 shares of 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post 2 ASX dividend shares with attractive 2021 yields appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3nf1EfU
Leave a Reply