Have you looked at the interest rate you're receiving on your savings recently? You might be surprised to learn that there is barely even a rate to speak of.
For example, the Commonwealth Bank of Australia (ASX: CBA) NetBank Saver account is offering a standard variable rate of just 0.05%. This is broadly in line with what the other big banks are offering.
This means that even if you had $1 million in one of these accounts, you would receive just $5,000 of interest each year.
If you're an income investor, I'm sure you would agree that this is nowhere near sufficient to live from.
But don't worry, because there are a number of quality ASX dividend shares on offer on the Australian share market to save the day. Two that I would buy for income are listed below:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share to look at is Accent. It is a footwear-focused retailer which owns retail store brands such as HYPE DC and Platypus. Accent has continued its positive form in 2020 despite the pandemic. This is being driven by the popularity of its brands, its strong market position, and growing online business.
Pleasingly, I believe there's still a lot more to come from Accent over the coming years. This is thanks to its strong online offering, expansion plans, and its focus on active and casual wear. Another positive is the tax cuts that have been promised with the Federal Budget. This will put money in consumers' pockets and support the retail sector.
In FY 2021, I'm expecting the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this equates to a 5.3% dividend yield.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider buying is Rural Funds. It is an agriculture-focused property company which owns a portfolio of property assets which are leased to some high quality producers. One of the main attractions to the company for me is its lengthy tenancy agreements. At the end of FY 2020, Rural Funds had a weighted average lease expiry of ~11 years.
And given that the company has rental increases built into these leases, I believe it is perfectly positioned to deliver on its distribution growth target of 4% per annum over the long term. It has already committed to this in FY 2021 and plans to lift its distribution to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 4.95% yield.
