Last week the Reserve Bank of Australia kept the cash rate on hold at a record 0.1% for yet another month. Unfortunately for income investors, this looks set to be the case for some time to come.
But don't worry, because the share market is here to save the day with its countless dividend options. Two ASX dividend shares that are highly rated are listed below:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share to consider is Accent. It is a footwear-focused retailer which owns a collection of popular store brands. These include HypeDC, Platypus, and The Athlete's Foot.
Thanks to a combination of new store brand launches, the expansion of its existing footprint, and growing demand in-store and online, Accent has been growing its earnings and dividends at a solid rate for a number of years.
The good news is that this is continuing in FY 2021. In February Accent reported a 6.6% increase in first half sales to $541.3 million and a 57.3% increase in net profit after tax to $52.8 million.
One broker that is a big fan of Accent is Bell Potter. It has a buy rating and $2.65 price target on its shares.
The broker is forecasting an 11.9 cents per share dividend in FY 2021 and a 12.2 cents per share dividend in FY 2022. Based on the current Accent share price of $2.64, this will mean a fully franked yields of 4.5% and 4.6%, respectively.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
If you don't already have exposure to the big four banks, then it could be worth considering ANZ Bank.
It has been a strong performer so far in FY 2021, as was demonstrated in its recent first half update. The good news is that trading conditions remain favourable and ANZ appears well-placed for growth again.
Analysts at Morgans are positive on the bank and are forecasting generous dividends from ANZ over the next two years. Its analysts are forecasting fully franked dividends of 145 cents per share and 163 cents per share in FY 2021 and FY 2022, respectively. With the ANZ share price currently fetching $27.75, this will mean yields of 5.2% and 5.9%.
Morgans has an add rating and $34.50 price target on its shares.
