Here’s why Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share could be quality options for income investors…
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If you’re wanting to overcome the ultra low interest rates being offered with savings accounts and term deposits, then the share market could be the answer.
Two ASX dividend shares that offer investors interest rate-beating yields are listed below. Here’s what you need to know:
Accent Group Ltd (ASX: AX1)
Although the name may not be familiar, Accent is one of Australia’s leading retailers and responsible for a number of popular retail brands. These include HYPEDC, The Athlete’s Foot, and Platypus, among others.
While some retailers have struggled over the last 12 months, Accent certainly isn’t one of them. After delivering a strong result in FY 2020, it is on course to do the same in FY 2021 thanks to the redirection of consumer spending and solid demand for leisure footwear.
One broker that has been pleased with its performance so far this financial year is Citi. In response to its recent trading update, the broker put a buy rating and $2.60 price target on its shares. It is also forecasting an 11 cents per share dividend. Based on the current Accent share price, this represents a fully franked 4.7% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
This telco giant’s shares may have been a very disappointing place to have invested over the last decade, but there are signs that the good times are coming back at long last. This is due to the easing NBN headwind, rational competition, lucrative 5G internet, and a potential splitting up of the company to unlock value.
Another positive is that a number of brokers believe the dividend cuts are over and feel Telstra’s free cash flow is sufficient to maintain its 16 cents per share dividend for the foreseeable future. Goldman Sachs is one of those. Based on the latest Telstra share price, this will mean a 5.1% dividend yield. Goldman also has a buy rating and $3.80 price target on its shares.
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.
*Returns as of June 30th
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.
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