The Motley Fool

These ASX dividend shares will help you beat low interest rates

According to the latest economic report by Westpac Banking Corp (ASX: WBC), its team continues to forecast the cash rate staying on hold at the record low of 0.25% until at least the end of 2021.

Given recent economic data and the medium term outlook, I suspect that this forecast will prove accurate.

In light of this, I believe ASX dividend shares remain the best option for investors looking to generate a source of income right now.

Three top ASX dividend shares that I would buy are listed below. Here’s why I like them:

Aventus Group (ASX: AVN)

The first dividend share to look at is Aventus. It is a retail property company which specialises in large format retail parks across Australia. As of its last update, Aventus had a total of 20 centres which were home to a diverse tenant base of 593 quality tenancies. This includes many of the largest retailers in the country such as ALDI, Bunnings, Officeworks, and The Good Guys. With its portfolio weighted heavily towards everyday needs, I believe it is better positioned than most to ride out the current crisis. So much so, I estimate that Aventus shares provide a dividend yield of at least 6% for FY 2021.

Coles Group Ltd (ASX: COL)

I think this supermarket giant would be a quality option for income investors. I believe Coles is well-positioned to grow its earnings and dividend at a solid rate over the next decade thanks to its defensive qualities, positive sales outlook, and potential margin expansion from its focus on automation. Based on the latest Coles share price, I estimate that it provides investors with a fully franked 3.7% FY 2021 dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. As with Coles, I like Wesfarmers for its defensive qualities and its positive long term outlook. The latter is especially the case now the government is supporting home improvements with additional stimulus. I expect this to give its Bunnings Warehouse business a big lift. And given how the hardware giant is now its biggest contributor to earnings, this is a big positive. I estimate that Wesfarmers’ shares offer investors a forward fully franked ~3.5% dividend yield.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

Related Articles...