Forget Westpac savings accounts and earn an income from these ASX dividend shares

I think income investors should skip Westpac Banking Corp (ASX:WBC) savings accounts and buy these ASX dividend shares…

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using asx shares to retire represented by piggy bank on sunny beach

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At present, the base interest rates on savings accounts from Westpac Banking Corp (ASX: WBC) are an ultra-low 0.05%.

With rates as low as this, it is near impossible to generate a sufficient income from them.

So, if you鈥檙e an income investor, I would suggest you skip savings accounts and look to the share market. Especially given the good number of quality dividend shares you鈥檒l find there.

But which ASX dividend shares should you buy? Two that I like are listed below:

Accent Group Ltd (ASX: AX1)

I think that Accent Group would be a great option for income investors. It is the footwear-focused retail group responsible for popular store brands such as The Athlete鈥檚 Foot, HYPE DC, and Platypus. Accent Group has been a very positive performer over the last few years and even during the pandemic. This has been driven by the popularity of its exclusive brands and its growing online business. The latter was incredibly important during the height of the pandemic.

The good news is that I鈥檓 confident these positive trends will drive further growth in the coming years. This should be supported by its expansion plans. For now, I鈥檓 forecasting Accent to pay a 9 cents per share fully franked dividend in FY 2021. Based on the current Accent share price, this equates to a generous 5.2% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another top option for income investors to consider buying is the Vanguard Australian Shares High Yield ETF. I think this would be perfect for investors that don鈥檛 have the funds required to build a truly diverse income portfolio.

This is because the Vanguard Australian Shares High Yield ETF provides investors with exposure to 66 of the highest yielding shares on the Australian share market. This diverse group of shares include the likes of BHP Group Ltd (ASX: BHP)Coles Group Ltd (ASX: COL)Fortescue Metals Group Limited (ASX: FMG), Telstra Corporation Ltd (ASX: TLS), and Westpac and the rest of the big four banks. I estimate that its units offer a FY 2021 dividend yield in the range of 4% to 5%.

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

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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