Unfortunately for income investors, interest rates are still at ultra low levels and unlikely to improve in the near term.
But don't worry because the Australian share market is home to countless dividend shares offering attractive yields. Two to consider are listed below, here's what you need to know about them:
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Accent Group Ltd (ASX: AX1)
Accent is a retail group with a collection of popular footwear-focused store brands. These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot.
But it is unlikely to stop there. Accent is not afraid to test the waters with new ideas. In fact, just last month the company launched a new brand called 4 Workers. If this launch is a success, the company is likely to throw capital behind the brand and grow its nationally. If it isn't a success, it will move onto the next idea.
Positively, this strategy has been working wonders. Thanks to the popularity of its brands and its expanding footprint, Accent has been growing at a consistently solid rate over the last few years.
In addition to this, the company has just bolstered its offering with the acquisition of Glue Store. This opens up Accent to the growing street fashion market, complementing its existing businesses.
Citi currently has a neutral rating but $3.10 price target on its shares. The broker is forecasting dividends of 12 cents per share and 12.5 cents per share over the next two years. Based on the latest Accent share price of $2.90, this represents fully franked yields of 4.1% and 4.3%, respectively.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider is Telstra. Although the telco giant's shares have been on a strong run in recent months, it doesn't appear to be too late to invest.
Thanks to its improving outlook due to the T22 strategy and its separation and asset monetisation plans, the Telstra share price has been tipped to climb meaningfully higher in 2021 by a number of leading brokers.
One of those is Goldman Sachs. Its analysts have a buy rating and $4.00 price target on the company's shares.
The broker is also forecasting 16 cents per share fully franked dividends for the foreseeable future. Based on the latest Telstra share price, this will mean dividend yields of 4.7%.
