If you’re looking for a way to overcome low interest rates, then you might want to look at the Australian…
The post 2 top ASX dividend shares for income investors appeared first on The Motley Fool Australia. –
If you’re looking for a way to overcome low interest rates, then you might want to look at the Australian share market.
This is because there are a large number of shares that pay generous dividends each year. Two such shares are listed below. Here’s what you need to know about them:
Coles Group Ltd (ASX: COL)
The first ASX dividend share to look at is Coles. It has been a very strong performer in FY 2021 thanks to solid growth from its core supermarkets business and also its other businesses such as flybuys and Liquorland.
And while the company is now cycling heightened sales from a year earlier and is likely to report a sharp slowdown in its growth in the immediate term, it looks well-placed to resume its growth again in FY 2022.
After which, its long term outlook remains very positive due to its strong market position, focus on automation, cost cutting, and long track record of same store sales growth.
Goldman Sachs is forecasting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.99, this will mean fully franked yields of 3.6% and 3.9%, respectively, over the next two years.
National Storage REIT (ASX: NSR)
Another dividend share to look at is National Storage. It is one of the ANZ region’s largest self-storage operators. At present the company tailors self-storage solutions from over 200 centres.
While this might sound like a large number of centres, management still sees plenty of room to grow its footprint in the future.
In fact, it is currently in the process of raising $325 million from investors via a capital raising. These funds will be used to strengthen its balance sheet and replenish its investment capacity. If deployed successfully, this could support solid earnings and dividend growth in the coming years.
Analysts at Ord Minnett are forecasting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.05, this will mean yields of 4% and 4.2%, respectively.
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Returns As of 15th February 2021
James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.