If you're looking to beat the 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 attractive yields are listed below. Here's what you need to know about them:
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Super Retail Group Ltd (ASX: SUL)
Super Retail is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.
Last month it released its half year results and reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. This was driven by strong like for likes sales, rapid online sales growth, and margin expansion.
This strong form allowed the Super Retail board to declare a fully franked interim dividend of 33 cents per share.
One broker that expects more of the same in the second half is Goldman Sachs. So much so, it is expecting the company to reward shareholders with a special dividend. Goldman is forecasting an 81 cents per share fully franked dividend for FY 2021.
Based on the latest Super Retail share price, this represents a 6.85% yield. The broker has a buy rating and $15.00 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share that Goldman Sachs likes is Telstra. The broker believes that its shares will re-rate higher in the future as it becomes a simpler business following its T22 strategy. It also sees further upside from its plan to split into four separate entities and monetise its assets.
In addition to this, importantly for income investors, the broker believes that Telstra will continue to pay a fully franked 16 cents per share dividend for the foreseeable future.
Based on the latest Telstra share price of $3.33, this will mean a fully franked yield of 4.55% for investors. Goldman Sachs has a buy rating and $4.00 price target on its shares.
