While rates are rising fast, savings accounts and term deposits still can't compete with the yields on offer with ASX dividend shares.
For example, two high yield ASX dividend shares that are rated as buys are listed below. Here's what you need to know about them:
Image source: Getty Images
GQG Partners Inc (ASX: GQG)
The first ASX dividend share that has been tipped as a buy is fund manager GQG.
It has been tipped as a buy by analysts at Goldman Sachs, who see significant value in the company's shares at the current level. They have a buy rating and $1.92 price target on them.
Goldman likes the company due to its strong investment performance and low fees. It highlights that the latter puts GQG in the lowest quartile among global peers. Another positive for Goldman, is that GQG's co-founders have the majority of their net wealth invested in the company and its investment strategies.
As for dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current GQG share price of $1.51, this will mean yields of 5.3% and 6%, respectively.
National Australia Bank Ltd (ASX: NAB)
Another ASX dividend share that could be a good option right now for income investors is this banking giant.
NAB appears well-placed to profit in the current environment with rates rising and its significant liquidity. In fact, it is for these reasons that Citi recently upgraded its shares to a buy rating with a $32.75 price target. The broker believes that historic levels of excess liquidity will boost NAB's net interest margin as interest rates rise rapidly.
In addition, Citi is expecting some attractive dividend yields from NAB's shares. It is forecasting a $1.50 per share dividend in FY 2022 and then a $1.85 per share dividend in FY 2023. Based on the current NAB share price of $29.82, this will mean fully franked yields of 5% and 6.2%, respectively.
