The S&P/ASX 200 Index (ASX: XJO) is in bloodbath mode today. The ASX 200 is down 7.01% at the time of writing to 4,932 points – the lowest level since 2016. Although it's hard to believe four years' worth of gains has now been wiped out of the markets, it's also a great time to pick up ASX dividend shares (despite what you might be feeling).
That's because as share prices fall, dividend yields rise – it's a beautifully inverse relationship.
So here are 2 ASX dividend shares currently boasting yields over 10% I'm eyeing off today!
Westpac Banking Corp (ASX: WBC)
Westpac is no one's favourite dividend share today. The Westpac share price has been absolutely mauled by the coronavirus situation. It's down 11.5% just today to $15.70 at the time of writing – a level we haven't seen since the depths of the GFC over a decade ago.
Now I don't think Westpac is an easy buy – record low interest rates and a possible Australian quantitative easing program is going to cripple the banks' ability to generate the kinds of profits investors are used to from Westpac and the other big four ASX banks.
But I still think the stock is oversold on current levels. Right now, Westpac is offering a stupendous trailing dividend yield of 11.08%, which grosses-up to 15.82% with full franking. Although the bank is likely to trim its dividend payouts this year, I still think it will offer a market-beating yield for some time yet at this price.
WAM Capital Ltd (ASX: WAM)
WAM Capital is the flagship listed investment company of Wilson Asset Management, which specialises in both mid-cap ASX shares and paying hefty dividend payments.
Since 1999, WAM Capital has returned an average of 16.3% per annum (before fees), so I think its history of outperformance speaks for itself – albeit with less impressive returns in recent years.
Right now, WAM Capital shares are offering a trailing dividend yield of 8.52% (which grosses up to 12.1% with full franking). I think that's a yield too good to ignore, especially with interest rates likely to be cut again soon to virtually zero.
Foolish takeaway
It's a pretty scary time to be watching the share market today, but in this low interest rate world we now live in, this might be a brief window of opportunity to lock down some oversize dividend yields for your ASX portfolio. Invest boldly today Fools!
