Interest rates may be at ultra-low levels, but all is not lost thanks to dividend shares.
The Australian share market is home to a large number of shares offering yields that are vastly superior to savings accounts and term deposits. Two to consider are listed below:
Aventus Group (ASX: AVN)
The first ASX dividend share to look at is this fully integrated owner, manager, and developer of large format retail centres.
Thanks to the quality of its tenancies and its exposure to everyday needs and national retailers, Aventus has been a very positive performer in FY 2021. This is not something that many retail landlords can say.
One broker that has been impressed with what it’s seen is Goldman Sachs. It currently has a buy rating and $3.04 price target on its shares. The broker notes its resilient performance during a period of uncertainty and a difficult operating environment.
Goldman is forecasting a 16.6 cents per share distribution in FY 2021 and then an 18.5 cents per share distribution in FY 2022. Based on the current Aventus share price of $2.84, this represents 5.8% and 6.5% yields, respectively.
Carsales.Com Ltd (ASX: CAR)
Another ASX dividend share to look at is Carsales. It is the auto listings company dominating the ANZ market and operating in a number of international markets. This will soon include the United States, once the proposed acquisition of Trader Interactive completes.
Carsales has been growing at a solid rate over the last decade and has continued this trend in FY 2021. Management recently provided guidance for the full year, revealing that it expects revenue of $433 million to $437 million and adjusted net profit after tax of $149 million to $153 million. The latter represents an 8% to 11% increase on FY 2020’s profit of $138 million.
Analysts at Morgans are positive on the company. They recently put an add rating and $20.82 price target on its shares.
Morgans is also forecasting dividends of 56 cents per share in FY 2021 and 59 cents per share in FY 2022. Based on the current Carsales share price of $17.62, this will mean fully franked yields of 3.2% and 3.3%, respectively.