If you're looking for a way to beat the ultra-low interest rates on offer with term deposits, then you might want to look to the share market.
Two ASX dividend shares that have been tipped as buys are listed below. Here's what you need to know:
Bravura Solutions Ltd (ASX: BVS)
Bravura is a leading wealth management and transfer agency software solution provider. It is best known as the company behind the Sonata wealth management platform. This increasingly popular platform streamlines the administration of a full range of wealth management products. A testament to its quality is the growing number of financial institutions using it. But it isn't a one-trick pony, Bravura has a number of other solutions with large addressable markets. This includes the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.
According to a note out of Goldman Sachs, its analysts have a buy rating and $4.50 price target on its shares. The broker is also forecasting a 10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.
Coles Group Ltd (ASX: COL)
This leading supermarket operator has been kicking goals in 2020 despite the pandemic. In FY 2020 the company delivered a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. And although COVID restrictions have eased, the company has continued to deliver strong sales growth in FY 2021.
This caught the eye of analysts at Goldman Sachs, who recently increased their earnings and dividend forecasts for the year. In respect to its dividend, the broker expects the company to pay a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a 3.5% dividend yield.
