With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.
While this is disappointing, investors need to worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:
National Storage REIT (ASX: NSR)
The first ASX dividend share to look at is National Storage. It is one of Australia’s largest self-storage providers, tailoring self-storage solutions to over 80,000 residential and commercial customers at 200+ storage centres across Australia and New Zealand.
The company’s offering spans self-storage, business storage, climate-controlled wine storage, vehicle storage, vehicle and trailer hire, packaging, insurance and other value-added services.
In FY 2021, the company expects to report underlying earnings per share of 7.7 cents to 8.3 cents. From this, it plans to pay out 90% to 100% to shareholders as distributions. Based on the middle of these guidance ranges and the current National Storage share price, this will mean a 3.6% dividend yield.
Positively, with the housing market cycle in its favour and the company continuing to expand through developments and acquisitions, it appears well-placed for growth in the coming years.
Suncorp Group Ltd (ASX: SUN)
Another dividend share to look at is Suncorp. For over a century Suncorp has been building futures and protecting what matters by offering insurance, banking, and wealth products and services through some of Australia and New Zealand’s most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.
It has returned to form in FY 2021 after a tough year in FY 2020 because of the pandemic. Pleasingly, one leading broker that believes this solid form can continue is Goldman Sachs. In light of this, it recently retained its buy rating and lifted its price target to $12.08.
The broker is positive on the company’s outlook and is forecasting generous dividend payments in the coming years. In FY 2021, for example, Goldman is expecting the company to reward shareholders with a 60 cents per share fully franked dividend. Based on the current Suncorp share price of $11.13, this will mean a 5.4% dividend yield.