With interest rates at record lows and potentially still going lower, it has been a tough few years for income investors.
Fortunately, there are a good number of dividend shares for investors to choose from on the Australian share market.
Two that provide generous dividend yields are listed below. Here's what you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is a leading footwear retailer which operates a large number of store brands. This includes HYPE DC, Platypus, The Athlete's Foot, and Sneaker Lab. And part of its store expansion plan, the company has just opened two new store brands despite the pandemic – Australian Stylerunner and Pivot. Pleasingly, management revealed that these new stores have been materially outperforming expectations since opening.
One broker that has been pleased with Accent's performance in FY 2021 is Morgan Stanley. It recently reiterated its buy rating on the company's shares. The broker is forecasting a fully franked dividend of 9.4 cents per share this year. Based on the current Accent share price, this represents a 4.3% dividend yield.
Coles Group Ltd (ASX: COL)
Another company that has been performing very positively this year is Coles. The supermarket operator delivered a 6.9% increase in sales to $37.4 billion in FY 2020 and has followed this up with further strong growth in the first quarter of FY 2021. For the three months ended 30 September, Coles reported a 10.5% increase in total sales over the prior corresponding period to $9.6 billion.
This strong start to the year went down well with analysts at Goldman Sachs. They believe Coles is well-placed to deliver a strong full year result and grow its dividend again. The broker has forecast a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this equates to a 3.6% dividend yield.
