On Tuesday the Reserve Bank of Australia met to discuss the cash rate. As was widely expected, the central bank kept rates on hold at the record low of 0.1%.
But this may not be the case for long, with the latest cash rate futures now pointing to a 65% probability of a rate cut at its next meeting in February 2021.
This would be another blow for income investors, who will have to contend with even lower rates next year.
But never fear, the Australian share market and its countless dividend shares are here to save the day.
Two ASX dividend shares that could solve your income needs are listed below. Here's why they have been given buy ratings:
Aventus Group (ASX: AVN)
Aventus is the owner and operator of large format retail parks across Australia. Among its tenant base it counts a wide range of major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. Having such quality retailers filling its centres has been a huge positive in 2020. At a time when many retail landlords have struggled to collect rent, Aventus has collected its rent largely as normal and been able to reward shareholders with generous dividends.
Analysts at Goldman Sachs expect this to be the case again in FY 2021. They currently have a buy rating and $2.76 price target on its shares. They are also forecasting a forward 6% dividend yield for investors.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. It is best-known for its Sonata wealth management platform, but also has a number of other quality 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 FY 2021 is going to be difficult due to COVID headwinds, Goldman Sachs thinks investors should stick with the company due to its strong long term growth potential. Its analysts have a buy rating and $4.50 price target on its shares. They are also forecasting a ~10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.
