If you're wanting to overcome the low interest rates being offered by the banks, 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:
Super Retail Group Ltd (ASX: SUL)
The first ASX dividend share to look at is Super Retail. It is the company behind popular retail store brands BCF, Macpac, Rebel, and Super Cheap Auto.
Last week the company released its half year results and revealed stellar sales and profit growth. For the six months ended 31 December, Super Retail reported a 23% increase in sales to $1.78 billion and a whopping 139% increase in underlying net profit after tax to $177.1 million.
This strong result was driven by solid growth across the company and particularly its online businesses. Online sales jumped 87% over the prior corresponding period to $237.4 million. In light of its strong performance, the Super Retail board declared a fully franked dividend of 33 cents per share.
One broker that is positive on the company is Goldman Sachs. After reviewing its result, the broker reiterated its buy rating and lifted its price target to $15.00. The broker is also forecasting a dividend of ~81 cents per share in FY 2021 (including a special dividend), which equates to a 6.8% yield. Though, it notes that even if capital management doesn't happen, it should provide a yield of approximately 5%.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider is Telstra. This telco giant has also recently released its half year results, which went down well with brokers.
Particularly given management's positive outlook. After years of earnings declines, Telstra CEO Andy Penn appears confident that the company is positioned to return to growth in FY 2022. This is thanks to the T22 strategy which has simplified its business and helped cut costs. Mr Penn has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023.
Another positive is that Telstra maintained its interim dividend at 8 cents per share and revealed plans to do the same with its final dividend. Based on this and the current Telstra share price, this will mean a fully franked 4.8% dividend yield.
Goldman Sachs was pleased with this update as well. The broker put a buy rating and $4.00 price target on its shares.
