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Smash low interest rates with these ASX dividend shares

Here’s why I think Dicker Data Ltd (ASX:DDR) and this ASX dividend share could be great ways to smash low interest rates right now…
The post Smash low interest rates with these ASX dividend shares appeared first on Motley Fool Australia. –

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According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant continues to expect the cash rate to stay on hold for as far out as its forecasts go.

This unfortunately means that it could be years before interest rates return to “normal” levels again.

In light of this, I believe ASX dividend shares will remain the best option for income investors for the foreseeable future.

But which dividend shares should you buy? Two that I think would be top options are listed below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is leading provider of software products and services to the wealth management and funds administration industries. It offers a number of quality products such as the Sonata wealth management platform. This popular wealth management platform allows advisers to connect and engage with clients via computers, tablets, or smartphones. It also has the Rufus transfer agency solution, the Garradin back office solution, and the recently acquired Midwinter financial planning solution.

Bravura’s shares have fallen heavily this year due to the impact of the pandemic on its performance. While its near term performance might underwhelm, I’m confident its growth will accelerate again once the crisis passes. This could mean it is a great time to make a patient investment in its shares. Especially given how they offer an attractive 3.3% dividend yield.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to consider buying is Dicker Data. It is the leading wholesale distributor of computer hardware and software across the ANZ region. I think it could be a great long term option due to its strong market position, growing vendor agreements, positive tailwinds, and new distribution centre. The latter gives the company significant room to expand its operations and boost its revenue growth once complete. 

For now, this year the company intends to increase its dividend by 31% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Dicker Data Limited. 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 Smash low interest rates with these ASX dividend shares appeared first on Motley Fool Australia.

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