It certainly is a tough time to be an income investor.
At present, Westpac Banking Corp (ASX: WBC) is offering investors interest rates of 0.6% per annum on five-year term deposits.
This means that even if you put $100,000 into them, you would earn interest of just $600 each year.
The good news is that there are countless dividend shares on the Australian share market that offer significantly better yields.
Two ASX dividend shares with yields greater than 4% are listed below:
Aventus Group (ASX: AVN)
Aventus is the owner and operator of 20 large format retail parks across Australia. Among its retail parks you will find major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys as tenants.
This high weighting to national retailers and every day needs has allowed Aventus to perform much stronger than other property companies during 2020. In fact, the company was largely able to collect the majority of its rent as normal in FY 2020.
Last week analysts at Goldman Sachs reiterated their buy rating and $2.76 price target on its shares. It notes that Aventus has a quality portfolio with opportunities to create value with its land bank. Based on the latest Aventus share price, the broker estimates that it offers a forward 6.1% dividend yield.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) which owns a diversified portfolio of high quality Australian agricultural assets that are leased to experienced agricultural operators such as wine giant Treasury Wine Estates Ltd (ASX: TWE).
At the end of FY 2020, the company owned 61 properties with a combined value of $1 billion and a weighted average lease expiry (WALE) of 10.9 years. From this, it was generating adjusted funds from operations (AFFO) of 11.7 cents per share. This allowed the Rural Funds board to declare a full year distribution of 10.8 cents per share.
Thanks to rental increases, the company intends to grow this distribution by its 4% per annum target growth rate in FY 2021 to 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.3% yield.