If you have money in the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account, you'll be receiving a base interest rate of just 0.05%.
This means that even if you put $1 million into this savings account, you would yield just $5,000 of interest each year. That's certainly not enough to live from.
The good news is that there are dividend shares on the Australian share market that offer considerably better yields.
Two top ASX dividend shares that I would invest my excess funds into next week are listed below:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software throughout the ANZ region. Earlier this month it released its half year update and revealed that its strong form had continued during the pandemic. Dicker Data reported an unaudited first half net profit before tax of $40 million on revenue of $1 billion. This was an increase of 25% and 18.3%, respectively, over the prior corresponding period. This strong form appears to have put the company in a position to deliver on its plan of lifting its dividend to 35.5 cents per share this year. Based on the latest Dicker Data share price, this equates to a fully franked 4.9% dividend yield.
Rural Funds Group (ASX: RFF)
Another dividend share for income investors to consider switching funds into is Rural Funds. I think the agriculture-focused property group is one of the best options on the local share market. This is due to its very positive long term outlook thanks to its high quality property portfolio, periodic rental increases, and lengthy tenancy agreements. In respect to the latter, at the end of the first half Rural Funds' weighted average lease expiry stood at 11.5 years. I believe this gives it great visibility with its future earnings and positions it perfectly to grow its distributions consistently in the future. In FY 2021 the company intends to lift its distribution to 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a forward 5.6% distribution yield.
