If you're unhappy with the low interest rates on offer with savings accounts and term deposits, then you might want to look at the numerous dividend options on the Australian share market.
Two ASX dividend shares that could help you beat low rates are listed below. Here's what you need to know about them:
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Rio Tinto Limited (ASX: RIO)
Rio Tinto could be an ASX dividend share to look closely at. It is one of the world's largest miners with a portfolio of world class operations across a number of commodities. One of those commodities is of course iron ore, which is currently commanding sky high prices.
This bodes particularly well for Rio Tinto given how the steel making ingredient contributes significantly to the company's earnings. It is thanks to this that analysts at Macquarie are forecasting bumper earnings and dividends from the mining giant in the near term.
The broker has pencilled in fully franked dividends per share of ~$13.19 in FY 2021 and ~$11.16 in FY 2022. Based on the latest Rio Tinto share price of $128.36, this equates to very generous yields of 10.3% and 8.7%, respectively.
Macquarie currently has an outperform rating and $163.00 price target on the miner's shares.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Supercheap Auto brands.
Super Retail has been a strong performer in FY 2021 thanks to a combination of the favourable redirection of consumer spending during the pandemic and its strong brands and market position.
According to the company's most recent update, its like for like sales were up 28% during the first 44 weeks of FY 2021 compared to the prior corresponding period. In addition, Super Retail's elevated gross margin had remained stable since the end of the first half. This bodes well for its full year profit growth.
One leading broker that is positive on the company is Goldman Sachs. In fact, it suspects that a special dividend could be paid in August. As a result, Goldman is forecasting an 84 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price of $12.62, this represents a 6.7% yield.
Goldman Sachs has a buy rating and $15.00 price target on its shares.
