Whether or not the cash rate goes lower again next month, only time will tell. But one thing I'm very confident of, is that it will be a long time until rates go higher again.
In light of this, I continue to believe that dividend shares are better options for income investors than traditional interest-bearing assets such as term deposits and savings accounts.
With that in mind, here are two ASX dividend shares I would buy for income:
Aventus Group (ASX: AVN)
I think Aventus would be a great option for income investors. It is the owner and operator large format retail parks across Australia. While retail property is a tough place to be, Aventus' focus on every day needs has allowed it continue its growth during the pandemic. For example, in FY 2021 it delivered a 4.2% increase in funds from operations (FFO) to $100 million.
I'm expecting more of the same in FY 2021, especially given the tax cuts that have been promised with the Federal Budget. These cuts should be supportive of consumer spending. In light of this, I forecast a 13.5 cents per share distribution this year. Based on the current Aventus share price, this represents an attractive 5.6% yield.
Telstra Corporation Ltd (ASX: TLS)
I think this telco giant would be a great option for income investors due to its generous yield and improving outlook. The latter is thanks to its T22 strategy, the arrival of 5G internet, and the easing of the NBN headwind. Together, I believe a return to earnings and dividend growth could be on the cards in the coming years.
For now, following its annual general meeting update this week, I'm very confident that Telstra will maintain its fully franked 16 cents per share dividend for the foreseeable future. Based on the latest Telstra share price, this represents a 5.5% dividend yield.
