If you're struggling to earn an income from traditional interest-bearing assets, you're not alone.
At present, term deposits offered by Commonwealth Bank of Australia (ASX: CBA) provide investors with an annual 1.25% interest rate on sums of $50,000 and greater for five years.
This means that $1 million invested in these term deposits would earn just $12,500 per annum.
The good news is that there are a large number of shares on the ASX that provide yields that smash those offered with term deposits.
Three to consider buying are listed below. Here's why I like them:
Accent Group Ltd (ASX: AX1)
Accent is a footwear focused retail company best known as the operator of the Athlete's Foot, HYPE DC, and Platypus chains. I've been impressed at the way the company continues to deliver growth despite the tough trading conditions in the retail sector. In the first half of FY 2020, Accent delivered total sales of $507.9 million and a net profit after tax of $35.3 million. This was an increase of 10.9% and 9.7%, respectively, on the prior corresponding period. I believe this leaves it well-placed for solid full year earnings and dividend growth and estimate that its shares offer a fully franked 5.1% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another dividend share I would consider is Sydney Airport. Whilst the coronavirus is likely to weigh on passenger numbers in the short term, I believe its long-term outlook is as positive as ever thanks to its position as the main gateway into Australia. Another positive is its growing ancillary revenues which are supporting its core business. Its shares currently offer investors an estimated forward 4.7% dividend yield.
Transurban Group (ASX: TCL)
A final option to consider buying is Transurban. The toll road operator continues to deliver solid earnings and distribution growth thanks to the quality of its roads, their strong pricing power, and increasing traffic. They all combined to help Transurban deliver a very strong half year result earlier this month. It reported an 8.6% increase in proportional toll revenue to $1,396 million and reaffirmed its plan to increase its FY 2020 distribution to 62 cents per share. This equates to a yield of 4%.
