If you are looking to add some dividend shares into your portfolio, then you might want to consider the two listed below.
Both of these ASX dividend shares offer generous yields which smash the interest rates currently being offered on savings accounts and term deposits. Here's why I like them:
Dicker Data Ltd (ASX: DDR)
The first dividend share I would buy is this wholesale distributor of computer hardware and software. Dicker Data has consistently grown its dividend at a solid rate over the last few years and this trend will continue in FY 2020. During the first half, Dicker Data continued to experience strong demand for its offering. So much so, its half year revenue broke through the $1 billion level for the first time. As a result of this, the company advised that it plans to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents an attractive fully franked 4.7% dividend yield.
National Australia Bank Ltd (ASX: NAB)
If you don't have exposure to the banking sector, then I think NAB could be worth considering. The banking sector has come under significant pressure this year due to the impact of the pandemic and the spike in bad debts that this is likely to cause. While a decline in the NAB share price was appropriate, I think the selling has been overdone and has left the banking giant's shares trading at a very attractive level. Especially for income investors on the lookout for a source of income. Based on the latest NAB share price, I estimate that the bank's shares currently offer investors a generous fully franked ~5% FY 2021 dividend yield. This is significantly better than the interest rates you'll get on its savings accounts and term deposits.
