Buy these ASX dividend shares to beat low interest rates

Bravura Solutions Ltd (ASX:BVS) and this ASX dividend share could be great options for income investors right now…
The post Buy these ASX dividend shares to beat low interest rates appeared first on Motley Fool Australia. –

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Fortunately for income investors in this low interest rate environment, there are a good number of quality dividend shares offering attractive yields.

Two top ASX dividend shares that I think investors ought to consider buying right now are listed below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

Due to a sharp pullback in the Bravura Solutions share price in 2020, I think it would be a great option for income investors. Bravura is a leading provider of software products and services to the wealth management and funds administration industries. Among its portfolio you’ll find the Sonata wealth management platform, the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.

Combined, I believe these have positioned Bravura perfectly for growth once the pandemic passes. For now, I estimate that it will pay shareholders an 11.5 cents per share dividend in FY 2021. Based on the current Bravura share price, this equates to a 3.3% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider buying is the Vanguard Australian Shares High Yield ETF. I’m a big fan of this ETF due to the diverse group of high yielding shares that it gives investors exposure to through just a single investment.

Among its holdings you’ll find many blue chip favourites such as the big four banks, BHP Group Ltd (ASX: BHP)Coles Group Ltd (ASX: COL)Fortescue Metals Group Limited (ASX: FMG), and Telstra Corporation Ltd (ASX: TLS). Estimating the yield on offer in FY 2021 is tricky because of the pandemic, but I would expect something in the range of 4% to 5%. This is likely to improve greatly in the future as companies bounce back from the crisis and are able to share more of their profits with shareholders.

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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 Bravura Solutions Ltd and Telstra Limited. 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 Buy these ASX dividend shares to beat low interest rates appeared first on Motley Fool Australia.

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