With low interest rates likely to be here to stay for some time to come, it certainly is a hard time for income investors.
But don’t worry, because there are plenty of ASX dividend shares that can help you overcome low rates. Two that are highly rated are listed below:
Aventus Group (ASX: AVN)
The first ASX dividend share to look at is Aventus. It is the largest fully-integrated owner, manager, and developer of large format retail centres in Australia.
Aventus owns a portfolio of 20 centres with a diverse tenant base of 593 quality tenancies. From these tenancies, national retailers such as ALDI, Bunnings, and Officeworks represent ~87% of its total portfolio.
This, and their exposure to every day needs, has allowed Aventus to perform strongly during the pandemic. For example, during the first half of FY 2021 it reported a modest increase in revenue and a 43% lift in net profit to $103.4 million. The latter includes a $25.7 million increase in the net fair value of its property.
Goldman Sachs is a fan of the company. It currently has a buy rating and $3.04 price target on its shares. As well as liking the company due to its exposure to the household goods sector, it notes that its bulky goods homewares tenant base is a natural resistance to online sales penetration.
The broker estimates that it will pay a ~16.6 cents per share distribution this year. Based on the current Aventus share price, this represents a 5.9% yield.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider buying is Telstra. This telco giant’s outlook is improving greatly thanks to its T22 strategy, the arrival of 5G internet, and its plan to split into three separate businesses. The latter is expected to allow Telstra to take advantage of potential monetisation opportunities, unlocking value for shareholders.
Goldman Sachs is a fan of Telstra as well. It recently reiterated its buy rating and $4.00 price target on the company’s.
It also continues to forecast a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a generous 5.2% dividend yield.
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Returns As of 15th February 2021
More reading
- 2 ASX dividend shares with 5% fully franked yields
- 3 blue chip ASX shares with dividend yields over 5% today
- This ASX dividend share has a very generous 5.9% yield
- Telstra (ASX:TLS) share price and others caught in Greensill insolvency
- Is the Telstra (ASX:TLS) share price a top buy right now?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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