March is gone and April is here. That means autumn, jokes and Easter. But as April dawns, the Reserve Bank of Australia (RBA) is set to keep interest rates at the record low of 0.1% when it meets next Tuesday. Of course, we don’t know this for sure. But seeing as RBA governor Dr Philip Lowe has indicated rates won’t be rising until at least 2024, it’s about the surest thing we are going to get from the world of investing this month.
So with interest rates t these lows, we are once again reminded of the fact that any cash we have in the bank is not going to be making anyone wealthy. These days, you’re lucky to get an interest rate above 1% on a savings account.
Luckily, ASX dividend shares are not so held down by interest rates. So here are two high-yielding dividend shares to consider this April:
Macquarie Group Ltd (ASX: MQG)
Macquarie has perhaps the unfortunate tag of being the ASX’s ‘fifth bank’. However, unlike Commonwealth Bank of Australia (ASX: CBA) or Westpac Banking Corp (ASX: WBC), Macquarie isn’t your typical ASX bank. It does offer loans, mortgages and bank accounts. But these form a very small portion of Macquarie’s earnings base. Instead, Macquarie’s crown jewels are its funds management business, as well as its investment banking divisions. So if you’re thinking Macquarie is ‘just another ASX bank’, you might want to think again.
In terms of dividends, Macquarie shares have a trailing dividend yield of 2.08%. That reflects the $1.80 and $1.35 per share dividends Macquarie paid out last year. However, 2019 saw this bank pay out $3.60 and $2.50 in dividends respectively. This indicates that Macquarie could increase its dividends back to these levels in 2021 and beyond as the pandemic heads into the rearview mirror.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider today is Rural Funds Group. Rural Funds is an agriculturally focused real estate investment trust (REIT). It holds a portfolio of farmland across Australia, which includes cattle farms, vineyards, as well as macadamia and almond orchards.
Farmland is a pretty stable kind of investment, and this is reflected in Rural Funds’ dividend distributions. Last year, the company managed to pay out four distributions, two worth 2.82 cents each and two worth 2.71 cents each. That in itself was an improvement on the four distributions of 2.71 cents and 2.61 cents each the previous year.
Those distributions give Rural Funds’ units a trailing yield of 4.08% on current pricing. Being a REIT, Rural Funds; distributions, unfortunately, don’t come with franking credits though.