2 ASX dividend shares with yields of 4%+

National Storage REIT (ASX:NSR) and this ASX dividend share offer ASX investors yields greater than 4% in FY 2021…

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While a number of companies have been forced to cut, defer, or suspend dividends this year because of the pandemic, a few have continued largely unaffected.

Two ASX dividend shares which have continued to pay their shareholders generous dividends are listed below. Here's what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage is one of the ANZ region's leading self-storage operators. Over the last few years, the company has been growing at a solid rate thanks to its strong position in a fragmented market and its growth through acquisition strategy. In respect to the latter, National Storage has continued to make acquisitions to bolster its network through the pandemic.

During FY 2020 there were over $200 million of acquisitions transacted. Since then, the company has completed eight acquisitions totalling $139 million. Furthermore, management advised that its forward-looking acquisition pipeline remains strong and it is working hard on completing a number of development projects.

At its annual general meeting, management revealed that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also advised that it intends to payout 90% to 100% of its earnings to shareholders as distributions. Based on the middle of both guidance ranges (8 cents and 95% payout ratio) and the current National Storage share price, this equates to a 4.3% yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused property group which owns 61 properties across five agricultural sectors. In FY 2020, Rural Funds was on form despite the pandemic and reported an 8% increase in property revenue to $72 million. Interestingly, approximately 78% of its revenue came from corporate or listed tenants. These include almond producer Select Harvests Limited (ASX: SHV) and wine giant Treasury Wine Estates Ltd (ASX: TWE).

It also reported that its weighted average lease expiry (WALE) stood at a sizeable 10.9 years at the end of the financial year. Combined with its fixed rental increases, these long leases are underpinning management's long term goal of growing its distribution by 4% per annum.

This is exactly what the company is planning to do this financial year. Management has provided FY 2021 distribution guidance of 11.28 cents per share, up 4% year on year. Based on the current Rural Funds share price, this works out to be a 4.3% yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. 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 Scott Phillips.

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