This afternoon the Reserve Bank of Australia will meet to decide on the cash rate. According to latest Westpac Banking Corp (ASX: WBC) weekly economic report, the banking giant is expecting the central bank to keep rates on hold at the record low of 0.1%.
In fact, it isn't just this month that the bank expects this to be the case. Westpac is forecasting rates to stay on hold until at least the end of 2022.
As a result, it looks as though dividend shares will remain the best way to generate a passive income for some time to come. But which ASX dividend shares should you buy? Here are two rated as buys:
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Coles Group Ltd (ASX: COL)
This supermarket giant could be a dividend share to consider buying. Thanks to its strong market position, focus on automation, and the normalisation of shopping trends, Coles has been tipped to grow its earnings and dividend at a solid rate in the coming years.
Goldman Sachs currently has a buy rating and $19.40 price target on its shares. It is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022. Based on the current Coles share price of $16.76, this represents yields of 3.7% and 4%, respectively, over the next two years.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to look at is Telstra. It has been tipped to provide investors with generous dividends over the coming years. This is being underpinned by its leadership position with 5G, asset monetisation, cost cutting, and rational competition.
Goldman Sachs is also a fan of Telstra. It currently has a buy rating and $4.20 price target on its shares. The broker is forecasting fully franked dividends of 16 cents per share through to FY 2023. After which, it is expecting a long-awaited dividend increase to 18 cents per share in FY 2024.
Based on the current Telstra share price of $3.79, this will mean 4.2% yields until an increase to 4.75%.
