If you’re wanting to overcome the low interest rates being offered by the banks, then the share market could be the answer.
Two ASX dividend shares that offer investors interest rate-beating yields are listed below. Here’s what you need to know:
Super Retail Group Ltd (ASX: SUL)
The first ASX dividend share to look at is Super Retail. It is the company behind popular retail store brands BCF, Macpac, Rebel, and Super Cheap Auto.
Last week the company released its half year results and revealed stellar sales and profit growth. For the six months ended 31 December, Super Retail reported a 23% increase in sales to $1.78 billion and a whopping 139% increase in underlying net profit after tax to $177.1 million.
This strong result was driven by solid growth across the company and particularly its online businesses. Online sales jumped 87% over the prior corresponding period to $237.4 million. In light of its strong performance, the Super Retail board declared a fully franked dividend of 33 cents per share.
One broker that is positive on the company is Goldman Sachs. After reviewing its result, the broker reiterated its buy rating and lifted its price target to $15.00. The broker is also forecasting a dividend of ~81 cents per share in FY 2021 (including a special dividend), which equates to a 6.8% yield. Though, it notes that even if capital management doesn’t happen, it should provide a yield of approximately 5%.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider is Telstra. This telco giant has also recently released its half year results, which went down well with brokers.
Particularly given management’s positive outlook. After years of earnings declines, Telstra CEO Andy Penn appears confident that the company is positioned to return to growth in FY 2022. This is thanks to the T22 strategy which has simplified its business and helped cut costs. Mr Penn has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023.
Another positive is that Telstra maintained its interim dividend at 8 cents per share and revealed plans to do the same with its final dividend. Based on this and the current Telstra share price, this will mean a fully franked 4.8% dividend yield.
Goldman Sachs was pleased with this update as well. The broker put a buy rating and $4.00 price target on its shares.
These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)
Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.
Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.
Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.
Click Here For Your Free Stock Report
Returns As of 15th February 2021
More reading
- ASX retail shares in focus as Aussies spend big in January
- Vita Group (ASX:VTG) share price up on results, despite Telstra woes
- Why the Whispir (ASX:WSP) share price is surging 10% higher today
- 2 high yield ASX dividend shares to buy today
- Telstra (ASX:TLS) full year dividend for 2021 expected to be 16 cents per share, fully franked
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post 2 fantastic ASX dividend shares to buy appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3ujmDCL
Leave a Reply