2 ASX dividend shares to buy with yields above 4%

These 2 ASX dividend shares have yields of more than 4%, whilst also offering growth potential. One idea is JB Hi-Fi Limited (ASX:JBH).

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The two ASX dividend shares revealed below both have dividend yields of more than 4%. They have also been delivering good dividend growth in recent years.

Not every dividend stock has been increasing the dividend in recent times. COVID-19 has made it very difficult for shares like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

However, these two picks have solid starting yields and a record of growth:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest retailers in the country. It specialises in selling phones, computers, TVs and household appliances. It's currently rated as a buy by the broker Credit Suisse which has a price target on the business of $57.39. That suggests a potential upside over the next 12 months of more than 20%.

After a 12% fall in the share price over the last month, the JB Hi-Fi share price is now more attractive according to the broker. It was particularly impressed by the trading update for the quarter ending 31 March 2021. In that update, JB Hi-Fi Australia quarterly sales grew by 10.4%. JB Hi-Fi New Zealand sales rose 16%. The Good Guys sales rose by 5.8%.

JB Hi-Fi said that it continues to see heightened customer demand and strong sales growth rates over a two-year period. The broker believes investors don't appreciate how much household demand there still is for the ASX dividend share's products.

Based on Credit Suisse's numbers, the JB Hi-Fi share price is valued at 11x FY21's estimated earnings with a forecast grossed-up dividend yield of 8.3%.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has fallen heavily during 2021. Over the last month alone Kogan shares have dropped by 25%.

For potential dividend investors, this has had the effect of boosting the trailing dividend yield on offer. Using the dividends paid over the last 12 months, Kogan currently offers a grossed-up dividend yield of 4.1%.

If the e-commerce company is able to sort out its inventory issues sooner rather than later should it should mean that there's no long-term impact on the Kogan dividend.

In the FY21 half-year result, Kogan revealed 97.4% gross sales growth, 126.2% gross profit growth and 164.2% net profit after tax (NPAT) growth. This gave the board the flexibility to increase the interim dividend by 113.3% to 16 cents.

The ASX dividend share has been struggling due to inventory issues, but it continued to report growth of customers and sales. Kogan.com customers jumped over 77% to 3.2 million whilst gross sales went up 47%. This could signify positive trends for the longer-term.

Broker Credit Suisse thinks the Kogan.com share price is a buy too with a price target of almost $18.

Looking to FY22, the Kogan share price is valued at 22x forward earnings with a projected FY22 grossed-up dividend yield of 4.2%.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Kogan.com 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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