With the base interest rates on savings accounts as low as 0.05%, it is almost impossible to generate a sufficient income from them.
But don't worry, because there are a number of quality dividend shares on offer on the Australian share market to save the day.
Two that I would buy are listed below:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying is Dicker Data. I think the leading wholesale distributor of computer hardware and software across the ANZ region is a great option. This is 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.
Another positive is the way the company has been able to continue its growth during the pandemic. At a time when many companies are struggling, Dicker Data recently reported half year profit before tax growth of 30.4% to $42 million. This puts it on course to deliver on its target of lifting its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.75% dividend yield. It is also worth noting that an insider has been buying shares this week. The company's COO, Vladimir Mitnovetski, picked up $37,500 worth of shares on Monday. Judging by this purchase, he sees value in its shares at this level.
Rural Funds Group (ASX: RFF)
Another ASX dividend share I would buy is Rural Funds. This agriculture-focused property group has been growing its distribution consistently each year for some time. Pleasingly, it looks well-positioned to continue doing so for the foreseeable future. This is thanks to its high quality portfolio of assets that have long term tenancy agreements and built in rental increases.
At the last count the company's weighted average lease expiry was almost 11 years. I believe this gives it great visibility on its future earnings and means its distribution growth looks very secure. In FY 2021 management is intending to grow its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 5.2% yield.
