Insights

2 generous ASX dividend shares to beat low rates

With rates set to remain on hold until at least 2024, Westpac Banking Corp (ASX:WBC) and this dividend share could be top options for income
The post 2 generous ASX dividend shares to beat low rates appeared first on The Motley Fool Australia. –

On Tuesday the Reserve Bank met for the first time in 2021 to decide on the cash rate.

Although the central bank decided against cutting rates at this meeting, that doesn’t mean a rate hike is coming any time soon.

Unfortunately for income investors, the Reserve Bank reiterated that it doesn’t believe conditions will allow for a rate increase until 2024 at the earliest. This is likely to mean that low interest rates are here to stay for some time to come.

The good news is that the Australian share market continues to offer income investors plenty of ways to avoid these low rates.

Two ASX dividend shares, for example, that have generous dividend yields are listed below. Here’s why you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent is the leading leisure footwear-focused retailer responsible for a number of retail brands including HYPEDC, Platypus, and The Athlete’s Foot. It has been a strong performer in FY 2020, delivering like-for-like sales growth of 12.3% for the first half.

Citi was pleased with its performance and has recently put a buy rating and $2.60 price target on its shares. It is also expecting the company to pay an 11 cents per share dividend this year. Based on the current Accent share price, this represents a fully franked 4.7% dividend yield.

Westpac Banking Corp (ASX: WBC)

Australia’s oldest bank may have seen its shares rally hard over the last few months, but thankfully it may not be too late to invest. Due to the improving outlook in the banking sector thanks partly to COVID-19 loan deferral reductions and mortgage growth, analysts at Citi are recommending the bank as a buy.

The broker has a buy rating and $26.00 price target on its shares and is forecasting a $1.30 per share fully franked dividend this year. Based on the latest Westpac share price, this represents a generous fully franked 6% yield.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 generous ASX dividend shares to beat low rates appeared first on The 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!