On Tuesday, the Reserve Bank once again kept the cash rate on hold at a record low and doesn’t look to be in a rush to increase rates. This could mean that income investors will have to contend with low interest rates for some time to come.
But don’t worry because there are plenty of quality dividend shares on the Australian share market that can help you overcome low rates.
But which dividend shares could be top options? Here are two that are rated as buys:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first ASX dividend share to look at is ANZ. This banking giant has returned to form in FY 2021, reporting a 28% increase in first half cash earnings to $2,990 million.
And while the recent lockdowns are a concern for the economy, the banks don’t appear to be fazed by this. In fact, ANZ has such confidence in the strength of its business that it announced a $1.5 billion capital return recently. It also hinted that there could be more returns in the future once the uncertainty eases.
Morgans is very positive on ANZ and currently has an add rating and $34.50 price target on its shares.
The broker is also forecasting fully franked dividends of 145 cents per share in FY 2021 and 165 cents per share in FY 2022. Based on the latest ANZ share price of $28.01, this represents yields of 5.2% and 5.9%, respectively.
Mineral Resources Limited (ASX: MIN)
Another ASX dividend share to look at is Mineral Resources. This mining and mining services company has been a very strong performer in FY 2021 thanks to its focus on two hot commodities – iron ore and lithium.
Thanks to this exposure, the team at Macquarie expect Mineral Resources to pay very generous dividends in the near term. A note from earlier this week reveals that Macquarie is forecasting fully franked dividends of $3.16 per share in FY 2021 and then $3.04 per share in FY 2022.
Based on the current Mineral Resources share price of $60.14, this will mean yields of 5.2% and 5.1%, respectively. Macquarie has an outperform rating and $75.00 price target on its shares.
The post 2 buy-rated ASX dividend shares with 5%+ yields appeared first on The Motley Fool Australia.
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
- Leading brokers name 3 ASX shares to sell today
- Why ASX lithium shares are beating the iron ore majors – again
- ANZ (ASX:ANZ) and this ASX dividend share offer generous dividend yields
- Up 275% today, Red Hill Iron (ASX:RHI) share price enters stratosphere
- Could it be time to consider buying ANZ (ASX:ANZ) shares?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/2VdaVxa
Leave a Reply