If you’re looking for a way to beat the ultra-low interest rates on offer with term deposits, then you might want to look to the share market.
Two ASX dividend shares that have been tipped as buys are listed below. Here’s what you need to know:
Bravura Solutions Ltd (ASX: BVS)
Bravura is a leading wealth management and transfer agency software solution provider. It is best known as the company behind the Sonata wealth management platform. This increasingly popular platform streamlines the administration of a full range of wealth management products. A testament to its quality is the growing number of financial institutions using it. But it isn’t a one-trick pony, Bravura has a number of other solutions with large addressable markets. This includes the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.
According to a note out of Goldman Sachs, its analysts have a buy rating and $4.50 price target on its shares. The broker is also forecasting a 10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.
Coles Group Ltd (ASX: COL)
This leading supermarket operator has been kicking goals in 2020 despite the pandemic. In FY 2020 the company delivered a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. And although COVID restrictions have eased, the company has continued to deliver strong sales growth in FY 2021.
This caught the eye of analysts at Goldman Sachs, who recently increased their earnings and dividend forecasts for the year. In respect to its dividend, the broker expects the company to pay a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a 3.5% dividend yield.
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Returns As of 6th October 2020
More reading
- ASX 200 rises more than 1% on Tuesday
- Here’s why the Bravura Solutions (ASX:BVS) share price raced higher today
- 2 cheap ASX shares to buy right now
- ASX 200 Weekly Wrap: ASX continues to climb, despite outage
- 3 leading ASX dividend shares to buy for income
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.
The post Why Coles and this ASX dividend share are buys for income investors appeared first on Motley Fool Australia.
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