Next week the Reserve Bank of Australia will meet to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 75% probability of a rate cut to zero.
This would be another blow for income investors, who will have to contend with even lower rates this 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 what you need to know about them:
Aventus Group (ASX: AVN)
The first dividend share to look at is Aventus. It is the largest fully-integrated owner, manager, and developer of large format retail centres in Australia, with a portfolio of 20 centres valued at $2.2 billion.
The company's portfolio covers 536,000m2 in gross leasable area and features a diverse tenant base of 593 quality tenancies. From these, national retailers such as ALDI, Bunnings, and Officeworks represent ~87% of the total portfolio.
Goldman Sachs is positive on the company. It recently reiterated its buy rating and lifted the price target on its shares to $2.79. The broker notes that approximately 63% of its tenants are exposed to the household goods sector, which has been performing strongly during the pandemic.
Goldman estimates that it will pay a ~16.5 cents per share distribution this year. Based on the current Aventus share price, this represents a 6% yield.
Rio Tinto Limited (ASX: RIO)
If you're not averse to investing in the resources sector, then you might want to look at Rio Tinto. Thanks to favourable copper and iron ore prices, this mining giant has been tipped to pay bumper dividends to investors in FY 2021.
For example, a recent note out of Macquarie reveals that it is expecting the mining giant to pay an ~$8.53 per share fully franked dividend in 2021.
Based on the current Rio Tinto share price, this represents a fully franked 7% dividend yield. The broker currently has an outperform rating and $125.00 price target on the company's shares.
