On Tuesday the Reserve Bank of Australia kept the cash rate on hold at the record low of 0.1%.
The central bank also appeared to indicate that it expects rates to stay at this level for a few more years. While this is good news for borrowers, it is the opposite for savers and income investors.
But don't worry, because the Australian share market is home to a number of quality companies that are sharing their profits with shareholders in the form of dividends.
Two ASX dividend shares to consider buying are listed below. Here's what you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is a footwear-focused retailer with a collection of popular store brands. It has been growing very strongly over the last few years and during the pandemic.
This has been driven by a combination of new store brand launches, the expansion of its existing footprint, and strong demand in-store and online.
Positively, Accent is on form again in FY 2021. In February the company reported a 6.6% increase in total sales to $541.3 million and a 57.3% lift in net profit after tax to $52.8 million.
According to analysts at Bell Potter, they are confident it will have a strong second half and are forecasting an 11.9 cents per share dividend in FY 2021. Based on the current Accent share price, this will mean a fully franked 5.4% yield.
Bell Potter has a buy rating and $2.65 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
This telco giant could be a great dividend share to buy to overcome low interest rates. Especially given its improving outlook, which is being underpinned by its T22 strategy and the easing NBN headwind.
In addition to this, the company is looking to unlock value by splitting into three separate businesses and offloading some assets.
Analysts at Goldman Sachs are positive on its future and are forecasting a 16 cents per share annual dividend for the foreseeable future. Based on the current Telstra share price, this will mean a 4.7% fully franked dividend yield.
Goldman Sachs has a buy rating and $4.00 price target on its shares.
