If you're wanting to overcome the ultra low interest rates being offered with savings accounts and term deposits, then the share market could be the answer.
Two ASX dividend shares that offer investors interest rate-beating yields are listed below. Here's what you need to know:
Accent Group Ltd (ASX: AX1)
Although the name may not be familiar, Accent is one of Australia's leading retailers and responsible for a number of popular retail brands. These include HYPEDC, The Athlete's Foot, and Platypus, among others.
While some retailers have struggled over the last 12 months, Accent certainly isn't one of them. After delivering a strong result in FY 2020, it is on course to do the same in FY 2021 thanks to the redirection of consumer spending and solid demand for leisure footwear.
One broker that has been pleased with its performance so far this financial year is Citi. In response to its recent trading update, the broker put a buy rating and $2.60 price target on its shares. It is also forecasting an 11 cents per share dividend. Based on the current Accent share price, this represents a fully franked 4.7% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
This telco giant's shares may have been a very disappointing place to have invested over the last decade, but there are signs that the good times are coming back at long last. This is due to the easing NBN headwind, rational competition, lucrative 5G internet, and a potential splitting up of the company to unlock value.
Another positive is that a number of brokers believe the dividend cuts are over and feel Telstra's free cash flow is sufficient to maintain its 16 cents per share dividend for the foreseeable future. Goldman Sachs is one of those. Based on the latest Telstra share price, this will mean a 5.1% dividend yield. Goldman also has a buy rating and $3.80 price target on its shares.
