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2 ASX dividend shares with yields over 9%

As anyone who keeps their eye on ASX shares would know, last week the Reserve Bank of Australia (RBA) cut interest rates to a new record low of 0.75%.

I’ve already checked my savings account and my new rate is about 1.75% per annum – pretty disheartening. It’s now going to be very hard to find a term deposit that will pay you 2% or more just to keep up with inflation.

So with the death of cash as a real investment, ASX dividend shares might be a better place to turn. Here are 2 ASX dividend shares that have yields over 9% that you might want to consider instead!

National Australia Bank Ltd (ASX: NAB)

NAB is of course one of our big four ASX banks, and by virtue of this pedigree offers a big juicy dividend – 6.5% on current prices, which means it is yielding 9.26% if you include franking credits.

I like NAB the best out of the ASX banks at the moment. The appointment of new CEO Ross McEwan is a great move from the bank in my opinion and looks likely to steer NAB in a more profitable direction. NAB also cut its dividend earlier this year, so I think it is one of the more sustainable banking yields going forward.

Just keep in mind that NAB shares are offering more than four times what a NAB term deposit will net you!

WAM Research Ltd (ASX: WAX)

WAM Research is a Listed Investment Company (LIC) with a stellar track record of dividend payments. WAX invests in small- to mid-cap companies on the ASX and has delivered a return of 16.4% per annum since 2010.

It uses the profits from these investments as well as the dividends it receives to pay a healthy yield – which is sitting at 6.98%, or 9.97% grossed-up with franking. Probably due to this impressive yield, WAX shares usually trade at a premium to its underlying net tangible assets (NTA). So today, you can pick up a WAX share for $1.39, but you’re really buying $1.20 worth of assets.

Although this may put many investors off, if you’re a yield-seeker, WAM Research could well be worth this premium.

Foolish takeaway

I think every investor should be looking for high-quality ASX dividend shares in this era of low interest rates. After all, your cash is almost better being under your mattress these days than in a bank, and in my view, dividend shares are better than both!

So if you agree, make sure to take a look at these three top income stocks!

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. 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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