Are you fed up with the low interest rates on savings accounts? You're not alone, if you are.
The good news is that the ASX is home to a large number of shares with generous dividend yields.
For example, two dividend shares that currently provide investors with yields that are vastly superior to savings accounts are listed below:
National Storage REIT (ASX: NSR)
National Storage is one of the region's largest self-storage operators. From over 190 locations across Australia and New Zealand, the company tailors self-storage solutions to residential and commercial customers.
Pleasingly, as large as it network might appear, management isn't finished with its growth through acquisition strategy. In fact, since the end of FY 2020, the company has completed eight acquisitions totalling $139 million. In addition to this, management advised that its acquisition pipeline is strong and it is working to complete a number of development projects.
Management recently reiterated that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also plans to pay 90% to 100% of its earnings out to shareholders as distributions. Based on the middle of both guidance ranges (8 cents and a 95% payout ratio), this equates to a 7.6 cents per share distribution. With the National Storage share price currently trading at $1.96, this represents a 3.9% yield.
Rural Funds Group (ASX: RFF)
Another dividend share to look at is Rural Funds. This real estate investment trust (REIT) owns a diversified portfolio of high quality Australian agricultural assets.
The majority of these assets are leased to experienced agricultural operators. This includes almond producer Select Harvests Limited (ASX: SHV) and wine giant Treasury Wine Estates Ltd (ASX: TWE). The company also enjoys a lengthy weighted average lease expiry of 10.9 years.
In FY 2021 management intends to grow its distribution by its 4% per annum target growth rate. This will mean a distribution of 11.28 cents per share. Which, based on the current Rural Funds share price, works out to be a 4.15% yield.
