If you're looking to beat low interest rates in 2021, then you might want to look at the dividend shares listed below.
Both shares offer investors attractive yields that are vastly superior to term deposits and savings accounts. Here's what you need to know about them:
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Accent Group Ltd (ASX: AX1)
Accent Group is a retail conglomerate focused primarily on the footwear market. It owns a number of popular store brands including HypeDC, Platypus, and The Athlete's Foot.
Thanks to a combination of new store brand launches, the expansion of its existing footprint, and strong sales in-store and online, Accent has been growing both its earnings and dividends at a solid rate in recent years.
Positively, this strong form has continued in FY 2021 despite the pandemic. During the first half, the company reported a 6.6% increase in first half sales to $541.3 million and a 57.3% increase in net profit after tax to $52.8 million. It then followed this up with even stronger sales growth during the third quarter.
One broker that is positive on the company is Bell Potter. It currently has a buy rating and $3.30 price target on its shares.
Bell Potter is also forecasting an 11.7 cents per share dividend in FY 2021 and then a 12.3 cents per share dividend in FY 2022. With the Accent share price currently fetching $2.74, this will mean fully franked yields of 4.3% and 4.5%, respectively.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider is Rural Funds. It is a real estate investment trust (REIT) which owns a diversified portfolio of high quality Australian agricultural assets that are leased to experienced agricultural operators.
At the last count, the company had a total of $1.1 billion in assets, revenues derived from leases across five sectors, and boasted a weighted average lease expiry of 11.1 years. Given that the latter includes periodic rental increases, this leaves Rural Funds well-positioned to deliver on its target of 4% distribution growth each year over the next decade.
In FY 2022, Rural Funds intends to do exactly that. It is planning to reward its shareholders with a distribution of 11.73 cents per share. Based on the current Rural Funds share price of $2.42, this will mean a yield of 4.8%.
