On Tuesday, the Reserve Bank once again kept the cash rate on hold at a record low and doesn't look to be in a rush to increase rates. This could mean that income investors will have to contend with low interest rates for some time to come.
But don't worry because there are plenty of quality dividend shares on the Australian share market that can help you overcome low rates.
But which dividend shares could be top options? Here are two that are rated as buys:
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Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first ASX dividend share to look at is ANZ. This banking giant has returned to form in FY 2021, reporting a 28% increase in first half cash earnings to $2,990 million.
And while the recent lockdowns are a concern for the economy, the banks don't appear to be fazed by this. In fact, ANZ has such confidence in the strength of its business that it announced a $1.5 billion capital return recently. It also hinted that there could be more returns in the future once the uncertainty eases.
Morgans is very positive on ANZ and currently has an add rating and $34.50 price target on its shares.
The broker is also forecasting fully franked dividends of 145 cents per share in FY 2021 and 165 cents per share in FY 2022. Based on the latest ANZ share price of $28.01, this represents yields of 5.2% and 5.9%, respectively.
Mineral Resources Limited (ASX: MIN)
Another ASX dividend share to look at is Mineral Resources. This mining and mining services company has been a very strong performer in FY 2021 thanks to its focus on two hot commodities – iron ore and lithium.
Thanks to this exposure, the team at Macquarie expect Mineral Resources to pay very generous dividends in the near term. A note from earlier this week reveals that Macquarie is forecasting fully franked dividends of $3.16 per share in FY 2021 and then $3.04 per share in FY 2022.
Based on the current Mineral Resources share price of $60.14, this will mean yields of 5.2% and 5.1%, respectively. Macquarie has an outperform rating and $75.00 price target on its shares.
