These high yield ASX dividend shares smash low interest rates

Commonwealth Bank of Australia (ASX:CBA) and this ASX dividend share could be great options for income investors in this low interest rate environment…

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On Thursday the Reserve Bank of Australia made an emergency cut to the cash rate in response to the coronavirus outbreak.

This was great news for borrowers, but another blow for income investors who will have to contend with low rates for some time to come.

One positive, though, is that the Australian share market is home to a large number of companies offering vastly superior yields to those you'll find with term deposits or savings accounts.

Two to consider buying once the market settles are listed below:

Commonwealth Bank of Australia (ASX: CBA)

The big four banks are certainly out of favour at the moment. All four banks are trading within sight of multi-year lows due to concerns over softening net interest margins, a potential spike in bad debts, and overall tough trading conditions. While things are admittedly tough, I feel all four banks are trading at very attractive levels and expect the buyers to flood in once the market volatility eases. This could make it worth considering an investment in Commonwealth Bank's shares when the market settles. Even after factoring in a probable dividend cut in FY 2020, the bank's shares offer an estimated forward fully franked 6.5% dividend yield.

Scentre Group (ASX: SCG)

This shopping centre-focused property company has been hammered this month due to concerns over the impact of the coronavirus outbreak. Whilst its will undoubtedly be hit hard by the outbreak, I believe the selloff has been severely overdone. Especially given the Federal Government's stance that shopping centres will remain open. According to a note out of Goldman Sachs, its analysts believe its liquidity position will easily cover all calendar year 2020 maturities. It remains buy-rated with a $3.74 price target and expects a 20.1 cents per unit distribution this year. This equates to a whopping 13.4% yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre 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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