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Interest rates to stay low for years? Buy these ASX dividend shares

Overnight the U.S. Federal Reserve kept interest rates on hold at zero and suggested that this will remains the case for years to come.

Unfortunately for income investors, I suspect that it will be a similar story in Australia as well.

But don’t worry, because there are plenty of quality dividend options available on the Australian share market right now.

Two ASX dividend shares I would buy are listed below:

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share to consider buying is Bravura Solutions. I think the provider of software products and services to the wealth management and funds administration industries would be a great option right now following a sharp pullback in its share price. This was driven partly by the company warning that earnings could be flat in FY 2021 because of the pandemic.

I think this has created a fantastic buying opportunity for investors and believe a return to growth will come once the pandemic passes. Especially given its high quality Sonata product and recent acquisitions. These look to have positioned Bravura perfectly for solid earnings and dividend growth over the next decade. Based on the current Bravura share price, it offers a 3.25% yield.

Telstra Corporation Ltd (ASX: TLS)

I think this telco giant could be an ASX dividend share to buy. Especially after a notable pullback in the Telstra share price since its full year results release. The catalyst for this share price weakness has been concerns that another dividend cut is coming.

While there is a real possibility that Telstra will cut its dividend down to 12 cents per share in FY 2021, I’m optimistic this won’t be the case. This is because a shift to a more appropriate free cash flow based dividend policy would allow for it to be maintained if it achieves its guidance. Based on the Telstra share price, a 12 cents per share dividend will provide a fully franked 4.2% yield. Whereas if it maintains it, it will provide a very generous 5.6% yield.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Telstra 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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