On Tuesday the Reserve Bank met for the first time in 2021 to decide on the cash rate.
Although the central bank decided against cutting rates at this meeting, that doesn't mean a rate hike is coming any time soon.
Unfortunately for income investors, the Reserve Bank reiterated that it doesn't believe conditions will allow for a rate increase until 2024 at the earliest. This is likely to mean that low interest rates are here to stay for some time to come.
The good news is that the Australian share market continues to offer income investors plenty of ways to avoid these low rates.
Two ASX dividend shares, for example, that have generous dividend yields are listed below. Here's why you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is the leading leisure footwear-focused retailer responsible for a number of retail brands including HYPEDC, Platypus, and The Athlete's Foot. It has been a strong performer in FY 2020, delivering like-for-like sales growth of 12.3% for the first half.
Citi was pleased with its performance and has recently put a buy rating and $2.60 price target on its shares. It is also expecting the company to pay an 11 cents per share dividend this year. Based on the current Accent share price, this represents a fully franked 4.7% dividend yield.
Westpac Banking Corp (ASX: WBC)
Australia's oldest bank may have seen its shares rally hard over the last few months, but thankfully it may not be too late to invest. Due to the improving outlook in the banking sector thanks partly to COVID-19 loan deferral reductions and mortgage growth, analysts at Citi are recommending the bank as a buy.
The broker has a buy rating and $26.00 price target on its shares and is forecasting a $1.30 per share fully franked dividend this year. Based on the latest Westpac share price, this represents a generous fully franked 6% yield.
