Searching for big dividend yields? If you are, then read on because listed below are two ASX dividend shares that offer investors very generous yields.
Here's what you need to know about these ASX dividends shares:
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Vanguard Australian Shares High Yield ETF (ASX: VHY)
The first option for income investors to consider is actually an ETF.
The Vanguard Australian Shares High Yield ETF provides investors with exposure to ASX-listed shares that have higher than average forecast dividends.
But it does this with diversification in mind. Rather than just loading up on banks and miners, the ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.
Among the ASX dividend shares that you'll be owning a slice of with this ETF are mining behemoth BHP Group Ltd (ASX: BHP), Australia's largest bank Commonwealth Bank of Australia (ASX: CBA), and telco giant Telstra Corporation Ltd (ASX: TLS).
At present, the Vanguard Australian Shares High Yield ETF trades with an estimated forward dividend yield of 6.3%.
Westpac Banking Corp (ASX: WBC)
A second option for income investors to consider is banking giant Westpac.
Goldman Sachs is very positive on Westpac due to its "strong leverage to rising rates" and "cost management initiatives."
In fact, Westpac is the broker's number one pick in the sector and has its coveted conviction buy rating on its shares with a $27.07 price target. This implies potential upside of 13% for investors.
The broker is also expecting some big dividends in the coming years, sweetening the deal further. Goldman has pencilled in fully franked dividends of 123 cents per share in FY 2022 and 139 cents per share in FY 2023. Based on the current Westpac share price of $23.99, this will mean yields of 5.1% and 5.8%, respectively.
