Luckily in this low interest rate environment, the Australian share market is home to a good number of shares that are expected to provide yields which are vastly superior to anything you'll find with savings accounts and term deposits.
But which ASX dividend shares should you be buying next week when the market reopens? Listed below are two blue chip dividend shares that have recently been given buy ratings:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first ASX dividend share to look at is banking giant ANZ Bank. With home loan growth tipped to accelerate, COVID-19 loan deferrals reducing nicely, and responsible lending rules easing, things are looking significantly more positive for the bank at present.
And with APRA removing dividend payment restrictions, this bodes well for dividends in FY 2021. In fact, according according to a note out of Citi, its analysts are forecasting a $1.20 per share dividend in FY 2021. This represents a fully franked 4.9% yield.
Citi also sees upside for its shares over the next 12 months. The broker has an add rating and $26.50 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another blue chip ASX dividend share to consider buying next week is Telstra. As with ANZ, Telstra has gone through a difficult period but appears to be coming out of it now. This is thanks to its T22 strategy, the arrival of 5G internet, and its plan to unlock value through asset sales.
One broker that is very positive on the telco giant is Macquarie. Its analysts recently retained their outperform rating and lifted the price target on its to $4.00.
Macquarie also expects the company to be able to maintain its 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this equates to a 5% dividend yield.