If you're unhappy with the low interest rates on offer with savings accounts and term deposits, then you might want to take a look at the numerous dividend options on the Australian share market.
Two ASX dividend shares that could help you beat low rates are listed below. Here's what you need to know about them:
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Sonic Healthcare Limited (ASX: SHL)
The first ASX dividend share to look at is Sonic Healthcare. Over the last couple of decades, Sonic has grown to become one of the world's leading healthcare providers, with operations in Australasia, Europe and North America. It currently employs more than 1,500 pathologists and radiologists, and more than 10,000 medical scientists, radiographers, sonographers, technicians and nurses.
Sonic has been a strong performer in FY 2021 thanks largely to increased demand for COVID-19 testing. This led to the company reporting a 33% increase in first half revenue to $4.4 billion and a massive 166% increase in first half net profit to $678 million.
Credit Suisse is a fan of the company. Its analysts currently have an overweight rating and $40.00 price target on its shares. The broker is forecasting dividends of 97 cents per share in FY 2021 and 98 cents per share in FY 2022. Based on the latest Sonic share price of $35.16, this will means yields of 2.5% and 2.6%.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share to look at is Super Retail. It is the retail group behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.
Super Retail has also been a strong performer in FY 2021. This has been driven by a favourable redirection in consumer spending during the pandemic. In the first half of FY 2021, Super Retail reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. And with international travel still some way off, it looks set to continue to benefit in the near term.
Goldman Sachs is positive on the company and is anticipating a strong full year result in August. It expects this to lead to Super Retail declaring a bumper full year dividend of 81 cents per share. Based on the latest Super Retail share price of $13.49, this will mean a fully franked 6% dividend yield.
The broker currently has a buy rating and $15.00 price target on its shares.
