Say goodbye to low interest rates and buy these ASX dividend shares

Forget the low interest rates offered by Commonwealth Bank of Australia聽(ASX:CBA) on its savings accounts and buy these ASX dividend shares…

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Woman smashes dollar sign for dividend share investment

Have you looked at the interest rate you鈥檙e receiving on your savings recently? You might be surprised to learn that there is barely even a rate to speak of.

For example, the聽Commonwealth Bank of Australia(ASX: CBA)聽NetBank Saver account is offering a standard variable rate of just 0.05%. This is broadly in line with what the other big banks are offering.

This means that even if you had $1 million in one of these accounts, you would receive just $5,000 of interest each year.

If you鈥檙e an income investor, I鈥檓 sure you would agree that this is nowhere near sufficient to live from.

But don鈥檛 worry, because there are a number of quality ASX dividend shares on offer on the Australian share market to save the day. Two that I would buy for income are listed below:

Accent Group Ltd聽(ASX: AX1)

The first ASX dividend share to look at is Accent. It is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. Accent has continued its positive form in 2020 despite the pandemic. This is being driven by the popularity of its brands, its strong market position, and growing online business.

Pleasingly, I believe there鈥檚 still a lot more to come from Accent over the coming years. This is thanks to its strong online offering, expansion plans, and its focus on active and casual wear. Another positive is the tax cuts that have been promised with the Federal Budget. This will put money in consumers’ pockets and support the retail sector.聽

In FY 2021, I鈥檓 expecting the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this equates to a 5.3% dividend yield.

Rural Funds Group聽(ASX: RFF)

Another ASX dividend share to consider buying is Rural Funds. It is an agriculture-focused property company which owns a portfolio of property assets which are leased to some high quality producers. One of the main attractions to the company for me is its lengthy tenancy agreements. At the end of FY 2020, Rural Funds had a weighted average lease expiry of ~11 years.

And given that the company has rental increases built into these leases, I believe it is perfectly positioned to deliver on its distribution growth target of 4% per annum over the long term. It has already committed to this in FY 2021 and plans to lift its distribution to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 4.95% yield.

Wondering where you should invest $1,000 right now?

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*Returns as of August 16th 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 RURALFUNDS STAPLED. The Motley Fool Australia has recommended Accent 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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