2 quality ASX dividend shares for income investors to buy today

Here’s why I would buy Coles Group Ltd (ASX:COL) and this ASX dividend share right now if I were an income investor…

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fingers walking up piles of coins towards bag of cash signifying asx dividend shares

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Fortunately, in this low interest rate environment, there are a good number of ASX shares paying investors handsome dividends.

Here are two ASX dividend shares that I think income investors should buy right now to beat low interest rates:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider buying is this supermarket giant. I think Coles is one of the best options for income investors right now due to its attractive yield, defensive qualities, and positive long term growth outlook. The latter is thanks to a combination of food inflation, its refreshed strategy, defensive earnings, and expansion opportunities.

Overall, I believe this puts the company in a great position to grow its dividend at a consistently solid rate over the next decade. For now, based on the current Coles share price, I estimate that it offers an attractive fully franked ~3.2% FY 2021 dividend.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A second option for income investors to consider buying right now is an exchange traded fund or ETF. I think the Vanguard Australian Shares High Yield ETF is great for investors that don’t have the funds to construct a diverse portfolio of ASX dividend shares. This is because this fund is invested in a total of 66 top shares which offer some of the most generous yields on the Australian share market.

These include the likes of Coles, the big four banks, BHP Group Ltd (ASX: BHP), and Telstra Corporation Ltd (ASX: TLS). Based on the current Vanguard Australian Shares High Yield ETF unit price, I estimate that it offers a FY 2021 dividend yield somewhere in the region of 4% to 5%. This is vastly superior to what you’ll find from a savings account or term deposits right now.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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