If you're looking 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:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first ASX dividend share to consider is ANZ. Due to the booming housing market, Australia's economic recovery, and the rollout of COVID-19 vaccines, this banking giant's outlook is looking very positive now. This could make it well worth considering ANZ if you haven't already got exposure to the sector.
One broker that is a fan is Morgans. Following ANZ's impressive first quarter update, the broker reiterated its add rating and lifted its price target to $31.00.
Its analysts are also forecasting a fully franked dividend of $1.45 per share in FY 2021. Which, based on the current ANZ share price, will mean a 5.1% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Now could also be a good time to consider buying this telco giant's shares. This is due to its improving outlook thanks to the easing NBN headwind, rational competition, lucrative 5G internet, and the probable splitting up of the company to unlock value.
Goldman Sachs is a fan of Telstra and currently has a buy rating and $4.00 price target on its shares. This compares to the current Telstra share price of $3.21.
The broker is also confident in Telstra's growth plans and sees value in its plan to split up and monetise its assets.
Overall, it believes the company is in a position to continue paying its fully franked 16 cents per share dividend for the foreseeable future. This will mean a 5% dividend yield for income investors. Which certainly is attractive given the low interest rates on offer elsewhere.
