If you're wanting to overcome low interest rates, then you may want to look at the dividend shares listed below.
Both shares are expected to provide investors with generous yields that are vastly superior to those offered with term deposits and savings accounts.
Here's what you need to know about these dividend shares:
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Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Aurizon. It is Australia's largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.
Last month Aurizon released its full year results and revealed a 1% decline in revenue to $3.019 billion and a flat net profit after tax of $531 million. While not a result to get excited about, it was in line with expectations and allowed the company to declare another generous dividend.
Credit Suisse was pleased with the result and has put an outperform rating and $5.30 price target on its shares. Its analysts are forecasting dividends per share of 29.5 cents in FY 2022 and then 30.9 cents in FY 2023.
Based on the current Aurizon share price of $3.79, this represents yields of 7.8% and 8.1%, respectively.
South32 Ltd (ASX: S32)
Another dividend share to look at is South32. This mining giant has exposure to a diverse group of commodities, including alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.
The key commodity at present is aluminium. This is due to the belief that aluminium is in the early stages of a multi-year bull market. Combined with largely favourable outlooks for many of its other commodities, this bodes well for future earnings and dividend growth.
Goldman Sachs is very positive on the company. It currently has a conviction buy rating and $3.60 price target on its shares.
In addition, based on the latest South32 share price, Goldman is forecasting double-digit dividend yields from FY 2022 through to FY 2025.
