With the Reserve Bank recently reiterating that it doesn't believe conditions will allow for a rate increase until 2024 at the earliest, it appears likely that low interest rates are here to stay for some time to come.
But don't worry, because there are plenty of ASX dividend shares that can help you overcome low rates. Two that are highly rated are listed below:
Aventus Group (ASX: AVN)
The first ASX dividend share to look at is Aventus. It is the largest fully-integrated owner, manager, and developer of large format retail centres in Australia. It has a portfolio of 20 centres and a diverse tenant base of 593 quality tenancies. From these, national retailers such as ALDI, Bunnings, and Officeworks represent ~87% of the total portfolio.
One broker that is a fan of the company is Goldman Sachs. It currently has a buy rating and $2.79 price target on its shares. It notes that almost two-thirds of its tenants are exposed to the household goods sector, which has been performing strongly during the pandemic. Goldman also believes its bulky goods homewares tenant base is a natural resistance to online sales penetration.
The broker estimates that it will pay a ~16.5 cents per share distribution this year. Based on the current Aventus share price, this represents a 6% yield.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider is Telstra. This telco giant has been tipped as a buy thanks to its improving outlook. This is being driven by its T22 strategy, the arrival of 5G internet, and its plan to split into three separate businesses.
The latter is expected to allow Telstra to take advantage of potential monetisation opportunities and unlock value for shareholders.
Goldman Sachs is also a fan of Telstra and recently reiterated its buy rating and lifted its price target to $4.00. The broker remains positive on its outlook and continues to forecast a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a 4.8% dividend yield.
