2 quality ASX dividend shares with attractive yields

Here are two dividend shares with good yields for income investors…

| More on:
ASX dividend shares represented by cash in jeans back pocket

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for a source of income in this low interest environment? If you are, then you may want to check out the ASX dividend shares listed below.

Both dividend shares offer investors generous yields that smash the interest rates on offer with term deposits. Here's what you need to know about them:

Rural Funds Group (ASX: RFF)

The first dividend share to look at is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets across five sectors. These comprise almonds, cattle, vineyards, cropping, and macadamias.

These properties are rented to some of the biggest players in the sector on very long leases. Combined with built in rental increases, this gives Rural Funds great visibility on its future earnings. As a result, it is able to confidently target distribution growth of 4% each year.

In FY 2022, management intends to increase its dividend by this amount once again to 11.73 cents per share. Based on the current Rural Funds share price of $2.97, this will mean a yield of just under 4%.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Australia's largest telco, Telstra. It could be a good option due to its attractive yield and improving outlook.

The latter is being underpinned by the success of its T22 strategy and the recent announcement of the T25 strategy that will replace it. While T22 was based on transforming the company, T25 will be about driving growth.

This will see Telstra aim to achieve sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates (CAGR) from FY 2021 to FY 2025.

All in all, this has many analysts believing that Telstra will soon be able to increase its dividend for the first time in almost a decade. For now, though, Telstra expects to pay a 16 cents per share dividend in FY 2022. Based on the current Telstra share price, this will mean a fully franked yield of almost 4%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

3 of the best ASX 200 shares to buy in 2025

Let's see why analysts at Bell Potter are bullish on these shares next year.

Read more »

People of different ethnicities in a room taking a big selfie, symbolising diversification.
Opinions

Want diversification? Get it instantly with these ASX 200 shares

Some businesses offer a lot more diversification than others.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Opinions

2 ASX 200 shares I'd want to receive as a present today

Merry Christmas! Are there any stocks under your tree?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Avita Medical, GenusPlus, Mesoblast, and Polynovo shares are storming higher

These shares are having a better day than most today. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Charter Hall Retail, DroneShield, FBR, and St Barbara shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

2 of the best ASX shares to buy in 2025

Bell Potter is feeling bullish on these shares as the new year approaches.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Will the market give investors a little Christmas present today?

Read more »