2 ASX dividend shares that could help you beat low interest rates

Low interest rates need not hold you back from generating a passive income…

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If you’re fed up with low interest rates, you’re not alone. But don’t worry, because the Australian share market is here to save the day with its countless dividend options.

Two ASX dividend shares that can help you beat low interest rates are listed below:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a high quality real estate investment trust with a focus on properties with specialist use, limited competition, and low substitution risk.

Among its portfolio you will find bus depots, police and justice services facilities, and childcare centres. In respect to the latter, the Charter Hall Social Infrastructure REIT is actually the largest owner of early learning centres in Australia. At the last count, it actively partnered with 35 high quality childcare operators.

The Charter Hall Social Infrastructure REIT has been in strong form this year, reporting a 14.1% increase in operating earnings to $29.1 million during the first half. This allowed management to upgrade its FY 2021 distribution guidance to 15.7 cents per unit.

Based on the current Charter Hall Social Infrastructure share price, this represents a 4.6% yield.

Westpac Banking Corp (ASX: WBC)

Another dividend share to look at is Westpac. Australia’s oldest bank has had a tough few years, but looks well-placed for growth again. This is thanks to improving trading conditions, a booming housing market, cost cutting, and the relaxing of responsible lending rules.

It was thanks to these factors that the banking giant smashed expectations during the first half of FY 2021. For the six months ended 31 March, Westpac reported cash earnings of $3,537 million. This was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020.

Analysts at Citi are positive on Westpac and have recently retained their buy rating and $29.50 price target on the company’s shares. The broker is also forecasting fully franked dividends per share of $1.16 and $1.18 over the next two years.

Based on the latest Westpac share price of $26.50, this will mean yields of 4.5% and 4.7%, respectively.

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Returns As of 15th February 2021

James Mickleboro owns Westpac shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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