With interest rates still at very low levels, it remains a difficult period for income investors. But never fear, the Australian share market is here to save the day with its plethora of dividend shares.
Two such dividend shares that could help you overcome low interest rates are listed below. Here's what you need to know about them:
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Healius Ltd (ASX: HLS)
The first ASX dividend share to look at is Healius. It is a healthcare company with a focus on diagnostic imaging, day hospitals, IVF, and pathology. The latter is the star of the show at the moment thanks to the incredible demand for COVID-19 testing. And with testing volumes likely to remain strong for some time to come, Healius looks well-placed to deliver another impressive result in FY 2022.
The team at Morgans expects this to be the case and believes it will lead to generous dividend payments. The broker has pencilled in fully franked dividends per share of 23 cents in FY 2022 and 19 cents in FY 2023. Based on the current Healius share price of $5.19, this will mean yields of 4.4% and 3.7%, respectively.
Morgans has an add rating and $5.79 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share that could be in the buy zone is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands.
Thanks to the popularity of these brands, Super Retail has been growing at a solid rate in recent years. And while FY 2022 will be a difficult year due to lockdowns and the cycling of strong growth in FY 2021, the company has still been tipped to reward shareholders with generous dividends.
One of the brokers tipping this is Citi. It expects fully franked dividends per share of 67 cents in FY 2022 and then 64.5 cents in FY 2023. Based on the current Super Retail share price of $12.55, this will mean yields of 5.3% and 5.1%, respectively.
Citi also sees meaningful upside for the Super Retail share price. It has a buy rating and $16.00 price target on its shares.
