With the base interest rates on savings accounts from Commonwealth Bank of Australia (ASX: CBA) and other banks 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:
Accent Group Ltd (ASX: AX1)
Accent is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. It has continued its positive form in 2020 despite the pandemic. This has been driven by the popularity of its brands, its strong market position, and growing online business.
The good news is that I believe there's still a lot more to come from Accent over the coming years. This is due to its expansion plans, strong online offering, and its focus on active and casual wear. In light of this, I think it could be a great long term option for income investors. Especially given its generous yield. I'm expecting it to pay a 9 cents per share fully franked dividend in FY 2021. Based on the current Accent share price, this means investors will receive a 5.7% dividend yield.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a leading wholesale distributor of computer hardware and software across the ANZ region. I think it could be a great option due to its strong market position, growing vendor agreements, positive tailwinds, and new distribution centre. Combined, I believe these have put Dicker Data in a position to continue its growth over the coming years.
This certainly was the case in the first half of FY 2020 when Dicker Data reported a 30.4% increase in half year profit before tax to $42 million. This means the company is on course to lift its dividend to 35.5 cents per share this year. Based on the current Dicker Data share price, this equates to a fully franked 4.4% dividend yield.
