If you’re looking to overcome low interest rates, then you may want to look at the dividend shares listed below.
Both options offer investors attractive yields that are superior to anything you’ll find with term deposits and savings accounts. Here’s what you need to know about them:
The first ASX dividend share to look at is this leading owner, manager, and developer of retail parks with a portfolio of 20 centres valued at $2.2 billion. At the last count, Aventus had a diverse tenant base of 593 quality tenancies, with national retailers representing 87% of its total portfolio.
It has been thanks partly to this tenancy mix, and its overweight exposure to household goods and everyday needs, that Aventus has been a very strong performer during the pandemic. In fact, it continues to report growth and property valuation increases.
One broker that expects this solid form to continue is Morgans. It currently has an add rating and $3.26 price target on its shares.
The broker is also expecting its dividends to continue growing. It is forecasting distributions of 17.5 cents per share in FY 2021 and then 17.8 cents per share in FY 2022. Based on the latest Aventus share price, this represents 5.6% and 5.7% yields, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend share to consider is this supermarket giant. Coles could be a great option for income investors due to its defensive qualities, strong market position, and solid long term growth prospects.
The latter is being underpinned by its Refresh Strategy, which is leading to significant investments in its online business, distribution, and automation.
The team at Morgan Stanley are positive on the company and have a buy rating and $19.00 price target on its shares. The broker is also forecasting fully franked dividends of 57 cents per share in FY 2021 and then 59 cents per share in FY 2022.
Based on the latest Coles share price, this will mean yields of 3.25% and 3.35%, respectively, over the next two years.