At present, Commonwealth Bank of Australia (ASX: CBA) offers income investors a yield of 0.4% on its term deposits. This is broadly in line with what the rest of the banks are offering.
This means that even if you $1 million invested into these term deposits, you would yield just $4,000 each year. Clearly, this isn't enough to live from.
The good news is that far greater yields can be found on the Australian share market.
With that in mind, listed below are two ASX dividend shares that are attractively priced and have generous yields. Here's what you need to know about them:
Telstra Corporation Ltd (ASX: TLS)
The first ASX dividend share to look at is Telstra. This telco giant looks well-placed to return to growth in the near future thanks to the success of its T22 strategy and its improving mobile outlook.
Another positive is its plan to split into three separate entities. This is expected to allow the telco giant to take advantage of potential monetisation opportunities and unlock value for shareholders.
Analysts at Goldman Sachs are positive on the company. They recently reiterated their buy rating and lifted their price target on its shares to $4.00. It is also forecasting a fully franked 16 cents per share for the foreseeable future.
Based on the current Telstra share price, this will mean a 4.9% dividend yield.
Westpac Banking Corp (ASX: WBC)
With the worst of the pandemic behind us and vaccines rolling out, the banking sector's outlook is looking significantly more positive now.
Especially given the relaxation of responsible lending rules, the rebounding housing market, and mortgage loan growth.
Another positive is that with the banks well-capitalised and APRA removing dividend restrictions, Westpac and the rest of the big four have been tipped as generous dividend payers in the future.
For now, analysts at Morgans are expecting the banking giant to pay a $1.32 per share fully franked dividend in FY 2021. Based on the latest Westpac share price, this represents a 5.5% dividend yield.
Morgans has an add rating and $27.50 price target on Westpac's shares.
