The outlook for interest rates in Australia is looking incredibly bleak. In fact, the RBA is widely expected to cut rates again next month.
In light of this, I continue to believe that dividend shares will remain the best way to earn a passive income for some time to come.
But which ASX dividend shares should you buy today? Two that I think investors should snap up right now are listed below:
Accent Group Ltd (ASX: AX1)
Accent is a footwear-focused retailer which owns a collection of retail store brands such as HYPE DC and Platypus. It also has the exclusive licence to a number of popular shoe brands in the Australian market.
Thanks to its growing online business and strong and on-trend offering, Accent has been a positive performer in 2020 despite the pandemic. Pleasingly, I believe this form can continue in FY 2021. Especially given the Federal Budget’s tax cuts, which is putting extra disposable income in the pockets of consumers. I expect this to allow Accent to pay a 9 cents per share fully franked dividend over the next 12 months. Based on the current Accent share price, this means investors will receive a forward 4.9% dividend yield.
National Storage REIT (ASX: NSR)
Another option I would buy is National Storage. I believe the self-storage operator could be a great long term option due to its strong position in a fragmented market and its growth through acquisition strategy. In addition to this, an increasing number of small businesses are using its storage units for non-traditional uses such as running their ecommerce businesses. This is made possible thanks to supplied Wi-Fi, shelving, power connectivity, and packaging supplies.
In FY 2021, management has warned that its earnings could be flat because of the pandemic. As a result, I expect it to pay a distribution of 7.6 cents per share over the next 12 months. Based on the current National Storage share price, this represents a generous 4.1% yield.
More reading
- 4 ASX shares to buy for a rare Christmas surprise
- These ASX dividend shares could be strong buys for income investors
- Beat the rate cuts with these ASX dividend shares
- Forget Westpac savings accounts and earn an income from these ASX dividend shares
- Looking for income? Buy these strong ASX dividend shares
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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