Income investors certainly are a lucky bunch. The Australian share market is filled to the brim with dividend-paying companies.
And while the average dividend yield usually sits at around 4%, some ASX dividend shares provide much juicier yields.
For example, the two shares listed below have been named as buys and tipped to offer yields greater than 6% this year and next. Here's what you need to know about them:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend share that could be worth considering this month is Accent Group.
It is a market-leading digitally integrated retail and distribution business in the performance and lifestyle market sectors. Its main focus is footwear, with the company operating a large number of retail banners such as HypeDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot.
At the last count, Accent Group had a network of over 800 stores. It also had 35 websites, 821 points of distribution, and almost 10 million contactable customers. This makes it the clear leader in the market.
Bell Potter is a very big fan of the company and sees significant value in its shares at current levels. The broker has a buy rating and $2.50 price target on them. This implies potential upside of approximately 30% for investors over the next 12 months.
But the returns won't stop there. Bell Potter expects some very big dividend yields from its shares in the near term. It is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.92, this represents dividend yields of 6.8% and 7.6%, respectively.
APA Group (ASX: APA)
Another ASX dividend share that could offer big yields for income investors in the near term is APA Group.
It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets. This includes 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia, delivering half the nation's natural gas usage.
In addition, it owns or has interests in gas storage facilities, gas-fired power stations, and renewable energy generation. In total, the company owns or manages and operates a portfolio of assets valued at around $25 billion.
Analysts at Macquarie are positive on the company and have an outperform rating and $9.40 price target on its shares.
As for dividends, the broker believes the company's long run of dividend increases can continue. It is forecasting dividends per share of 56 cents in FY 2024 and then 57.5 cents in FY 2025. Based on the current APA Group share price of $8.39, this equates to 6.7% and 6.85% dividend yields, respectively.
