Insights

Beat low interest rates with these top ASX dividend shares

Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share could help you beat low interest rates…
The post Beat low interest rates with these top ASX dividend shares appeared first on The Motley Fool Australia. –

ASX dividend shares represented by cash in jeans back pocket

Earlier this month the Reserve Bank of Australia kept the cash rate on hold at a record low of 0.1%.

Unfortunately, it could be a long time until interest rates move higher from here, let alone back to normal levels.

In light of this, income investors look set to be better off sticking with dividend shares instead of term deposits or savings accounts.

But which dividend shares should you buy? Two top dividend to consider buying are listed below. Here’s why they could be great options in this low interest rate environment:

National Storage REIT (ASX: NSR)

The first option to consider is National Storage. This self-storage operator appears well-positioned to grow its income and distribution at a solid rate over the long term.

This is thanks to its strong position in a fragmented market, its growth through acquisition strategy, and the booming housing market. The latter traditionally results in strong demand for its units.

In addition to this, an increasing number of small businesses are using its storage units for non-traditional uses such as running their ecommerce businesses. This is made possible thanks to supplied Wi-Fi, shelving, power connectivity, and packaging supplies.

Based on the current National Storage share price and its guidance for FY 2021, its shares currently offer a forward 3.5% distribution yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to consider is Telstra. The telco giant could be a quality option due to its improving outlook and attractive valuation.

In respect to the former, thanks to a combination of cost cutting, rational competition, and a positive growth outlook in the mobile business, Telstra appears well-placed to return to growth from FY 2022. This should be boosted further by its separation and asset monetisation plans.

In light of the above, Morgan Stanley is forecasting a 16 cents per share fully franked dividend for FY 2021 and FY 2022. This represents a generous 4.7% 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 15th February 2021

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 Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Beat low interest rates with these top ASX dividend shares 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!