Insights

2 ASX dividend shares with better yields than term deposits

Bravura Solutions Ltd (ASX:BVS) and this ASX dividend share provide income investors with yields that are better than term deposits…
The post 2 ASX dividend shares with better yields than term deposits appeared first on Motley Fool Australia. –

dividend shares

As was widely expected, on Tuesday the Reserve Bank cut the cash rate to a record low of 0.1%.

Unfortunately, this is potentially going to make it even harder for income investors to generate sufficient returns from term deposits and other interest-bearing assets.

But don’t worry, because the Australian share market is home to plenty of dividend shares.

Two companies that pay out a large amount of their earnings as dividends are listed below:

Bravura Solutions Ltd (ASX: BVS)

Bravura is a leading wealth management and transfer agency software solution provider. The key product in its portfolio (and biggest contributor to earnings) is the Sonata wealth management platform. This platform streamlines the administration of a full range of wealth management products – all within a single solution. In addition to this, the company has a number of other popular solutions with large addressable markets. This includes the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.

In FY 2020 Bravura posted a 22% increase in net profit after tax to $40.1 million. This allowed the Bravura board to declare a 5.5 cents per share unfranked final dividend, which brought its full year dividend to 11 cents per share. Based on the current Bravura share price, this equates to a trailing 3.7% yield.

Coles Group Ltd (ASX: COL)

This supermarket operator has been a strong performer in 2020 despite the pandemic thanks partly to its defensive qualities. In FY 2020 the company reported a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. Pleasingly, this strong form has continued in FY 2021, with Coles recently reporting very strong first quarter sales growth.

In light of this strong start to the year, analysts at Goldman Sachs increased their earnings and dividend forecasts for the year. In respect to the latter, the broker estimates that the company will pay a fully franked 64 cents per share dividend. Based on the current Coles share price, this equates to a 3.5% dividend yield.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 ASX dividend shares with better yields than term deposits appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!