2 compelling ASX shares with dividend yields above 10%

Detailed summary

These businesses offer exceptionally high dividend yields. The post 2 compelling ASX shares with dividend yields above 10% appeared first on The Motley Fool Australia.

I think there are some excellent ASX shares with large dividend yields that Australians can be attracted to.

I wouldn't say every business with a big dividend is a buy right now. Sometimes a large yield can be in danger of an imminent cut.

But, there are a few ASX dividend shares that look particularly appealing and that I expect will pay a resilient (and perhaps growing) dividend in the next few years. Below are two excellent options, in my view.

My first suggestion is a listed investment company (LIC) that looks to give investors exposure to international companies.

LICs invest in shares and other assets to generate investment returns and this is what pays for the dividends.

A majority of the LIC's portfolio is decided by a group of permanent fund managers, who all work for free. A minority of the portfolio is invested in stock picks that are identified by investment professionals at an annual investment conference.

There are no management fees involved in this business, so it can regularly donate to leading Australian medical research organisations.

In its September monthly update, the business said that in the three years to 30 September 2026, its portfolio had returned an average of 14% per year, which is impressive, in my view.

Based on the board of the LIC's announced intention to grow its dividend payment every six months, it could pay an annual dividend per share of 21.5 cents in the next 12 months. That translates into a potential forward grossed-up dividend yield of 10%, including franking credits, at the time of writing, with a share price of $2.89.

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