Unfortunately for savers and income investors, it looks likely to be a long time until interest rates return to "normal" levels again.
Don't worry, though, because the Australian share market can help you overcome low interest rates.
But which ASX dividend shares should you buy out of the hundreds to choose from? Two high yield dividend shares that I would buy are listed below:
Fortescue Metals Group Limited (ASX: FMG)
I think Fortescue could be a top dividend share to buy right now. This is thanks to very strong iron ore prices and the mining giant's low costs and improving grades. Combined, this appears to have put Fortescue in a position to deliver very strong free cash flows in FY 2020 and FY 2021.
And given the hard work the company has put into strengthening its balance sheet in recent years, I believe the majority of this free cash flow will be returned to shareholders. Based on the current Fortescue share price, I estimate that this could mean a forward fully franked dividend in the region of ~6%.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider buying is Rural Funds. It is a property company which has a diverse portfolio of high quality agricultural assets leased on long term tenancy agreements to the likes of Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV).
Given how its tenancy agreements include fixed rent increases, I believe the company is well-placed to grow its income and distribution at a solid and predictable rate over the next decade. This certainly will be the case in FY 2021, with management intending to lift its distribution by 4% to 11.28 cents per share. Based on the current Rural Funds share price, this equates to a generous 5.5% distribution yield.
