With the cash rate tipped to go even lower next week, it is about to get even harder to generate a sufficient income from traditional interest-bearing assets such as term deposits and bond yields.
But don't worry, because there are a good number of ASX dividend shares that are offering vastly superior yields.
Two ASX dividend shares I would buy for income are listed below. Here's why I rate them highly:
Aventus Group (ASX: AVN)
Aventus is the owner and operator of 20 large format retail parks across Australia. Among its 593 tenancies you'll find major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. Thanks to tenants like these, the company's centres have a high weighting towards everyday needs. This has been a real blessing during the pandemic, allowing Aventus to collect the majority of its rent as normal in FY 2020.
In light of this, the company delivered a 4.2% increase in funds from operations (FFO) to $100 million during the 12 months and rewarded shareholders handsomely with distributions. I'm expecting a similarly solid year in FY 2021. Based on this and the current Aventus share price, I estimate that it offers a forward 5% yield.
Bravura Solutions Ltd (ASX: BVS)
Another ASX dividend share to consider buying is Bravura Solutions. It is a leading provider of software products and services to the wealth management and funds administration industries. The key product in its portfolio is the Sonata wealth management platform, which is used by a number of major financial institutions. It also has a number of other solutions with large addressable markets. These includes the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.
Combined, I believe these have put Bravura in a strong position for growth once the pandemic passes. In the meantime, I estimate that it will pay shareholders an ~11.5 cents per share dividend in FY 2021. Based on the current Bravura share price, this equates to a 3.3% dividend yield.
