2 highly rated ASX dividend shares to buy today

Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share are highly rated. Here's why income investors might want to consider them…

| More on:
asx dividend shares represented by tree made entirely of money

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking to beat the low interest rates being offered with savings accounts and term deposits, then the share market could be the answer.

Two ASX dividend shares that offer investors attractive yields are listed below. Here's what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Last month it released its half year results and reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. This was driven by strong like for likes sales, rapid online sales growth, and margin expansion.

This strong form allowed the Super Retail board to declare a fully franked interim dividend of 33 cents per share.

One broker that expects more of the same in the second half is Goldman Sachs. So much so, it is expecting the company to reward shareholders with a special dividend. Goldman is forecasting an 81 cents per share fully franked dividend for FY 2021.

Based on the latest Super Retail share price, this represents a 6.85% yield. The broker has a buy rating and $15.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share that Goldman Sachs likes is Telstra. The broker believes that its shares will re-rate higher in the future as it becomes a simpler business following its T22 strategy. It also sees further upside from its plan to split into four separate entities and monetise its assets.

In addition to this, importantly for income investors, the broker believes that Telstra will continue to pay a fully franked 16 cents per share dividend for the foreseeable future.

Based on the latest Telstra share price of $3.33, this will mean a fully franked yield of 4.55% for investors. Goldman Sachs has a buy rating and $4.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

A woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Dividend Investing

1 practically perfect Australian stock down 45% to buy now for lifelong income!

Income investors might want to check out this beaten down stock.

Read more »

A man with a wry smile on his face is shown close up behind ascending piles of coins as he places another coin on top of the tallest stack representing rising dividends
Dividend Investing

Here are the 3 biggest dividend payers in my ASX stock portfolio today

These three stocks pour cash in to my portfolio...

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.
Dividend Investing

Overinvested in Fortescue shares? I'd buy these ASX dividend shares

Fortescue may not be the best choice for dividend income.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

I’d rather buy these stocks for income than hold a term deposit right now.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget CBA shares and buy these ASX dividend shares

Analysts are bearish on CBA but bullish on these shares.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed…

BlackRock has announced the next lot of dividends for its iShares ETFs, as well as the DRP prices.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Dividend Investing

How are these passive income investors earning a 7.5% dividend yield on their surging CBA shares?

CBA shares are proving more lucrative for some passive income investors than others.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

3 excellent ASX dividend shares to buy with $2,500

Brokers think these shares could be in the buy zone for income investors.

Read more »