Last month the Reserve Bank of Australia opted to cut the cash rate down to a record low of 0.1%.
This was another blow for income investors, who will have to contend with even lower rates in 2021.
But don’t worry, the Australian share market is home to countless dividend shares that offer better yields than term deposits and savings accounts.
Two great examples of this are listed below:
Aventus Group (ASX: AVN)
Aventus is the largest fully-integrated owner, manager, and developer of large format retail centres in Australia. At the last count, it had a portfolio of 20 centres valued at $2.2 billion. Its portfolio spans 536,000m2 in gross leasable area and comprises a diverse tenant base of 593 quality tenancies.
From these, national retailers represent 87% of the total portfolio. This includes retailers such as ALDI, Bunnings, and The Good Guys. Thanks to the quality of its tenancies and its high weighting to everyday needs, Aventus has been a positive performer this year despite the pandemic.
One broker that has been impressed is Macquarie. Last month its analysts put an outperform rating and $2.93 price target on its shares. The broker is also forecasting a dividend of 16.7 cents per share. Based on the current Aventus share price, this represents a 6% yield.
National Storage REIT (ASX: NSR)
National Storage is one of the ANZ region’s leading self-storage operators. Over the last few years, the company has been growing at a solid rate. This has been driven by its strong position in a fragmented market and its successful growth through acquisition strategy. In addition to this, new revenue streams, such as allowing small businesses to run their operations from Wi-Fi-enabled units, has also supported its growth.
Another solid result is expected in FY 2021. Management recently confirmed that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents. It also advised that it intends to pay 90% to 100% of its earnings to shareholders as distributions. Based on the middle of both guidance ranges and the current National Storage share price, this equates to a 3.8% yield.
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Returns As of 6th October 2020
More reading
- 2 ASX dividend shares to buy this week
- 2 ASX dividend shares with attractive yields
- 2 excellent ASX dividend shares with 6%+ yields
- These ASX dividend shares will help you beat low interest rates
- Leading brokers name 3 ASX shares to buy today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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