2 ASX dividend shares with generous yields

Aventus Group (ASX:AVN) and this ASX dividend share offer income investors generous dividend yields. Here's why they could be buys…

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Are you looking for some generous dividend yields to boost your income? Then take a look at the ones listed below.

Here's why these dividend shares could be great options for income investors right now:

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Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a fully integrated owner, manager, and developer of large format retail centres. Thanks to its overweight exposure to the household goods sector and everyday needs, Aventus has been able to collect rent largely as normal in FY 2021.

For example, at a time when many retail landlords are struggling, Aventus delivered a 6.5% increase in funds from operations (FFO) to $55.9 million during the first half. Positively, more of the same is expected in the second half.

Goldman Sachs is a big fan of Aventus. It currently has buy rating and $3.06 price target on its shares. Goldman is also forecasting a 16.6 cents per share full year dividend in FY 2021. Based on the latest Aventus share price of $2.92, this represents a generous 5.7% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It owns a portfolio of high quality agricultural assets across five sectors. These are almonds, cattle, vineyards, cropping and macadamias.

Among its tenants are highly experienced operators such as Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE). Positively, due to the nature of the business, the majority of its tenants are locked in on ultra long term contracts with fixed rental increases. This means management has great visibility on its future income, giving it the confidence to set a distribution target of 4% per annum over the long term.

Pleasingly, it plans to deliver on this target in FY 2021 and FY 2022. Rural Funds intends to pay shareholders 11.28 cents per share this year and then 11.73 cents per share next year. Based on the current Rural Funds share price of $2.40, this will mean yields of 4.7% and 4.9%, respectively.

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. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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