Rates could be on hold for years so buy these excellent ASX dividend shares

Coles Group Ltd (ASX:COL) and this ASX dividend share will help you overcome low interest rates in 2021 and beyond…
The post Rates could be on hold for years so buy these excellent ASX dividend shares appeared first on The Motley Fool Australia. –

According to the latest Westpac Banking Corp (ASX: WBC) Weekly economics report, the banking giant continues to forecast the cash rate staying on hold until at least the end of 2022. However, it could be much longer based on its estimates for unemployment and inflation.

Chief Economist Bill Evans said: “Markets will focus on the revised forecast for the path of the unemployment rate following the sharp improvement in the recent data. There is likely to be a downward recalibration in the RBA’s forecast path for the unemployment rate but the Bank also appears to have lowered its estimates of the full employment rate.”

“The net effect will be consistent policy guidance that it will still be some time – 2024 at the earliest – before the Bank expects to achieve its full employment and inflation targets. The faster likely improvement in the labour market will be offset by the more challenging target for the full employment rate,” he concluded.

While this is disappointing for income investors, all is not lost. The Australian share market is home to a number of quality companies that offer attractive dividend yields.

But which dividend shares should you buy? Here are two that come highly rated right now:

Accent Group Ltd (ASX: AX1)

Accent is a leading leisure footwear-focused retailer that owns a number of popular retail store brands. It has been growing its earnings and dividend at a solid rate for years and appears well placed to continue this trend. 

Bell Potter is positive on the company and has a buy rating and $2.65 price target on its shares. It is forecasting dividends of 11.9 cents per share in FY 2021 and 12.2 cents per share in FY 2022. This will mean fully franked yields of 5% and 5.1%, respectively, over the next two years.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider buying Coles. This supermarket operator looks well-placed for growth over the 2020s thanks to its strong market position, Refreshed Strategy, and focus on automation.

Goldman Sachs is a fan of the company. Its analysts currently have a buy rating and $20.70 price target on its shares. Goldman is forecasting dividends of 62 cents per share in FY 2021 and a 67 cents per share in FY 2022. Based on the current Coles share price of $15.56, this represents fully franked yields of 4% and 4.3%, respectively.

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 owns shares of Westpac Banking. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Rates could be on hold for years so buy these excellent 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!