2 ASX dividend shares with grossed-up yields over 8% right now

Finding an ASX dividend share that yields anything north of 4% isn’t the easiest task, especially if you want to filter out any dreaded ‘dividend traps’. But finding ASX dividend shares with a grossed-up yield over 8% is even harder, given there is only a handful or two on the share market.

But if you do find an ASX dividend share sporting that kind of yield, it can make a big difference to your share portfolio’s cash flow. So here are two such ASX dividend shares offering trailing and fully franked yields of that size right now.

2 ASX dividend shares with fully franked yields over 8% today

Adairs Ltd (ASX: ADH)

Adairs is the bedding and homewares company that has made quite the splash on the ASX boards over the past few years. Its shares are up an impressive 143% over the past 5 years. But more recently, the company has been battling some disappointing share price moves. It was only in April last year that the company was making all-time highs of close to $5 a share. But the company has taken a recent tumble, and is now down more than 20% over just the past month. A disappointing trading update earlier this month saw the company crater close to 20% in just one day, driven largely by the narrowing of margins that Adairs reported.

But a share price fall does wonders for a company’s trailing dividend yield and this turns out to be the case here. Adairs paid out two dividends last year. There was an interim dividend of 13 cents per share in March. And the final dividend of 10 cents per share was paid out in September. That gives Adairs a raw trailing dividend yield of 7.08% on the company’s last share price. Since those dividends both came fully franked, this yield grosses-up to a whopping 10.11%.

WAM Research Limited (ASX: WAX)

WAM Research is our second ASX dividend share to check out today. We have here a Listed Investment Company (LIC), which means, unlike most ASX companies, WAM Research only invests in other ASX shares for the benefit of its shareholders. It typically holds a portfolio of small or mid-cap industrial shares that WAM’s analysts believe are poised to rise in value. Some of its current holdings (as of 31 December) include Lovisa Holdings Ltd (ASX: LOV) and Brickworks Limited (ASX: BKW)

WAM Research has long had a reputation as a dividend income heavyweight, due to its consistently high dividends. Last year, it paid out 9.9 cents per share in dividends, which was a slight increase on 2020’s 9.8 cents. That gives WAM Research a raw trailing yield of 6.19% on today’s closing share price. WAM Research’s dividends also typically come fully franked, which means that trailing yield grosses-up to 8.84% with the value of those credits included. 

The post 2 ASX dividend shares with grossed-up yields over 8% right now appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares for February
• Are these 2 ASX dividend shares buys in February 2022?
• Why analysts are bullish on these 2 ASX dividend shares
• Broker says Adairs (ASX:ADH) share price is cheap after selloff
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking

Motley Fool contributor Sebastian Bowen owns ADAIRS FPO and WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO and Brickworks. The Motley Fool Australia owns and has recommended ADAIRS FPO and Brickworks. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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