2 shares with huge dividend yields I want to buy today

Select Harvests Limited (ASX:SHV) is 1 of 2 stocks with big dividends on my watchlist.

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In this era of low interest rates and sluggish growth it can be hard to find satisfactory investment ideas, particularly if you're looking for a good income stream.

I believe shares are definitely the way to go for income and you've come to the right place to learn about two good options.

Here are two businesses that have large dividend yields that are likely to grow over the long term:

Select Harvests Limited (ASX: SHV)

Select Harvests is one of Australia's biggest almond producers with a market capitalisation of $424 million.

The main two factors influencing how it will perform are the price of almonds and how many almonds it produces. This year it's on course to have a record number of tonnes produced.

The price of almonds is down to supply and demand. The number of almonds consumed is increasing each year thanks to western (and Asian) diets changing to products like almond milk, nut desserts, and eating nuts as snacks.

Almond prices have decreased substantially, which is why the share price is down, but it seems the almond price isn't going much lower so the share price could remain stable from here.

Select Harvests is trading at 16.2x FY17's estimated earnings with a trailing grossed up dividend yield of 11.76%.

WAM Capital Limited (ASX: WAM)

WAM Capital is one of the top-performing listed investment companies (LICs) run by Geoff Wilson and his investment team, it has a market capitalisation of $1.4 billion.

WAM Capital has a strong record of outperforming the market by focusing on buying small-to-medium capitalisation shares whilst maintaining a good level of cash for protection against crashes and also as ammunition for cheap prices if they appear.

By taking this approach, WAM Capital grew its portfolio by 14.5% over the last 12 months, translating into generous dividends for shareholders. By outperforming the market it is able to provide shareholders with a big dividend yield, a growing dividend and a growing share price.

WAM Capital's share price has grown by 50.3% in five years, the dividend has increased every year since 2009 and it currently has a grossed up yield of 8.67%.

Foolish takeaway

I like both of these businesses, which is why I'm a shareholder of both. Out of the two, WAM Capital is my favourite as I think it will provide market-beating returns for many years to come and Select Harvests' results in the short term may be a little disappointing. To ensure your portfolio is market beating, make sure you aren't invested in these danger stocks.

Motley Fool contributor Tristan Harrison owns shares of Select Harvests Limited and WAM Capital Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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