Last week the Reserve Bank of Australia met to discuss the cash rate and opted to cut it down to a record low of 0.1%.
This was another blow for income investors, who will have to contend with even lower rates in 2021.
But never fear, the Australian share market is home to countless dividend shares that offer better yields than term deposits and savings accounts.
Two that do exactly this are listed below:
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. The key product in its portfolio is the Sonata wealth management platform. It allows users to connect and engage with their clients anytime, anywhere, through computers, tablets or smartphones. Demand for Sonata has been growing in recent years and has been underpinning the company's growth. But Bravura certainly isn't a one-trick pony and has a number of other products supporting its growth. This includes the Rufus transfer agency solution, the Midwinter financial planning solution, and the recently acquired Delta Financial Systems.
And while management has warned that its earnings could be flat this year because of the pandemic, it remains positive on its long term prospects due to its portfolio. It commented that Bravura is positioned for "long-term growth driven by market demands for microservices ecosystems, digital solutions and automation."
In FY 2020, the company paid investors an 11 cents per share unfranked dividend. Based on the current Bravura share price, this equates to a 3.75% dividend yield.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a leading distributor of computer hardware and software across the ANZ region. It has been growing both its earnings and dividend at a quick rate over the last few years thanks to growing vendor agreements and increasing demand. Pleasingly, this has continued in 2020 despite the pandemic. For example, last month Dicker Data released its third quarter update and revealed year to date profit before tax growth of 28.3% to $60.8 million.
With its update, management spoke positively about its outlook. It notes that demand is strong, quoting activity is high, and 5G and artificial intelligence are huge opportunities for the company in the medium term.
In the meantime, Dicker Data is planning to pay a 35.5 cents per share fully franked dividend this year. Based on the latest Dicker Data share price, this equates to a 3.4% dividend yield.
