With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.
While this is disappointing, investors need not worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:
Bravura Solutions Ltd (ASX: BVS)
The first ASX dividend share to look at is Bravura Solutions. It is a leading provider of software products and services to the wealth management and funds administration industries.
Its shares have been sold off this week following the release of its full year results. Although the company achieved the low end of its guidance, its FY 2022 guidance was a touch below expectations. In addition, the shock departure of its long-serving CEO hit investor sentiment hard.
The team at Goldman Sachs believe that this is a buying opportunity. They believe the selloff was overdone and have retained their buy rating with a slightly trimmed price target of $3.70.
The broker is also forecasting dividends per share of 10 cents, 11 cents, and then 13 cents between FY 2022 and FY 2022. Based on the current Bravura share price of $3.10, this will mean yields of 3.2%, 3.5%, and 4.2%, respectively.
Goldman Sachs is positive on the company and believes it is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy.
Super Retail Group Ltd (ASX: SUL)
A second ASX dividend share to consider is Super Retail. It is the retail conglomerate responsible for the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.
It was a very strong performer in FY 2021. For example, earlier this month Super Retail released its full year results and revealed a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.
This was underpinned by double digit like for like sales growth across all of its brands. Positively, it also revealed that FY 2022 has started strongly, with sales up 15% year on year for the first seven weeks of the financial year.
In response to the result, analysts at Credit Suisse put an outperform rating and $14.40 price target on its shares.
As for dividends, Credit Suisse is forecasting dividends per share of 51.6 cents in FY 2022 and 50 cents in FY 2023. Based on the current Super Retail share price of $12.07, this will mean fully franked yields of 4.3% and 4.1%, respectively.
