With term deposits offering only paltry interest rates, income investors are turning to the share market for yield.
If you’re one of them, then you might want to take a closer look at the dividend shares listed below:
Accent Group Ltd (ASX: AX1)
The first dividend share to look at is Accent. It is the leading footwear retailer behind a number of popular store brands. These include HYPE DC, Platypus, The Athlete’s Foot, and Sneaker Lab. Accent has also recently launched two new store brands– Australian Stylerunner and Pivot.
Pleasingly, although a pandemic is not necessarily the best time to launch a new retail brand, this hasn’t stopped these new brands from thriving. Management revealed that these new stores have been materially outperforming expectations since opening. This bodes well for its bold expansion plans over the coming years.
According to a note out of Morgan Stanley, it expects the company to pay a fully franked dividend of 9.4 cents per share in FY 2021. Based on the latest Accent share price, this represents a 4% dividend yield.
Aventus Group (ASX: AVN)
Another dividend share to look at is Aventus. It is the owner and operator of 20 large format retail parks across Australia. It counts major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys as tenants.
This is positive for two reasons. Not only has this supported high occupancy levels, these tenancies give the company’s centres a high weighting towards everyday needs. This has proven to be a real strength during the pandemic and allowed Aventus to collect the majority of its rent as normal in FY 2020.
Analysts at Macquarie are positive on the company and believe it will pay a 16.7 cents per share dividend in FY 2021. Based on the latest Aventus share price, this represents a forward 6% dividend yield.
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Returns As of 6th October 2020
More reading
- Why did the Accent (ASX:AX1) share price defy the odds in 2020?
- Why Afterpay (ASX:APT) and these ASX shares just hit 52-week highs or better
- These are the 7 best ASX retail shares in 2020
- Here’s what these popular ASX dividend shares plan to pay investors in 2021
- 2 ASX dividend shares with attractive yields
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Smash term deposits with these ASX dividend shares appeared first on The Motley Fool Australia.
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