If you're looking to beat low interest rates in 2021, then you might want to look at the dividend shares listed below.
Both shares offer investors generous yields that are vastly superior to those offered with term deposits and savings accounts. Here's what you need to know about these dividend shares:
Mineral Resources Limited (ASX: MIN)
The first high yield ASX dividend share to consider is Mineral Resources. It is a mining and mining services company.
Mineral Resources has been tipped by analysts at Macquarie to reward shareholders with some big dividends over the next couple of years. This is thanks to its exposure to iron ore and lithium.
Macquarie is expecting Mineral Resources to pay fully franked dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $57.18, this will mean fully franked yields of 5.8% and 5.3%, respectively, over the next two financial years.
The broker currently has an outperform rating and $73.00 price target on the company's shares.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share for income investors to look at is Telstra. It could be a good option due to its increasingly positive outlook.
This is due to sizeable cost cutting, restructuring, rational competition, and a positive growth outlook in the key mobile business driven by its 5G leadership.
One broker that is positive on Telstra is Ord Minnett. It has a buy rating and $4.10 price target on its shares at present. The broker also continues to forecast 16 cents per share fully franked dividends for the foreseeable future.
Based on the current Telstra share price of $3.75, this will mean attractive yields of almost 4.3% over the coming years.
