Earlier this week the Reserve Bank of Australia elected to keep rates on hold again. Unfortunately for income investors, this looks likely to remain the case for some time to come.
The good news is that there are a large number of dividend shares with attractive yields ready to save the day. Two such examples are listed below:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
If you don't already have exposure to the banking sector, then it could be worth considering ANZ. Especially given its improving outlook and the prospect of dividend increases in the coming years.
One broker that is particularly positive on ANZ is Morgans. The broker recently retained its add rating and lifted its price target on the bank's shares to $33.50. This compares to the latest ANZ share price of $29.20.
In addition to this, the broker is forecasting fully franked dividends of $1.45 and $1.63 per share over the next two financial years. Based on the current ANZ share price, this will mean yields of 5% and 5.6%, respectively.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another ASX dividend share to look at is Sydney Airport. While trading conditions are tough for the airport operator right now, it looks well-placed to rebound once travel markets return to normal.
Goldman Sachs expects this to be the case. The broker recently retained its buy rating and $6.73 price target on its shares.
And while Goldman isn't expecting much by way of dividends in FY 2021, it appears confident that things will normalise next year. The broker is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022.
Based on the current Sydney Airport share price of $6.12, this will mean yields of 1.4% and 4.6%, respectively.
