Search by ticker code:
Generic filters

2 ASX Dividend Income Shares To Beat 1% Interest Rates

It’s very tough to get any sort of income from the bank these days with the RBA just reducing Australia’s interest rate to 1%. ASX dividend shares could be the answer.

You may still be able to get an interest rate starting with a 2.% from your bank, but even a million dollars in the bank wouldn’t make you very much.

The only thing to do might be to invest in ASX dividend shares like these two:

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) which invests in the larger businesses on the ASX, The LIC structure allows WAM Leaders to make profit from dividends received and capital gains and then pay a growing stream of fully franked dividends.

Since inception in May 2016 to the end of May 2019, WAM Leaders has produced an average return per year of 11.5% before fees and expenses, essentially being the gross return, outperforming the ASX 200 Accumulation Index by 1%.

WAM Leaders has used some of that profit to pay a growing dividend, it currently has a fully franked dividend of 4.7%. It seems to be trading at a little discount to its underlying asset value (called the net tangible assets (NTA) per share)

Naos Emerging Opportunities Company Ltd (ASX: NCC)

This is another LIC, but it invests in some of the smallest shares on the ASX, it looks at businesses with market capitalisations under $250 million.

The small end of the market has been fairly rough for small cap value managers over the past year or two, but Naos Emerging Opportunities still has a performance (after expenses, before fees) of generating average returns of 11.15% per year since February 2013.

Again, it has used this performance to pay a steadily growing dividend since FY13. At the moment it has a fully franked dividend yield of 7.8%. It is trading at a discount to the underlying NTA per share.

Summary

Both of these dividend shares could be interesting ideas to invest in, particularly the Naos LIC for its large dividend yield and small cap focus.

There are other options for dividends as well, such as the reliable and proven ASX businesses revealed in the free report below.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

FREE & NEW: Our Complete Passive Income Strategy

With interest rates UP, now is one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% -- or more -- in dividend passive income from the best shares, LICs, or ETFs... it's like free money credited to your bank account.

So how do the best investors do it?

Whether you have $2,000 or $2,000,000, our Chief Investment Analyst Owen Rask has just released his brand new ASX Passive Income Report. Featuring the best dividend ETFs, LICs, funds and shares, this report cannot be missed by anyone wanting passive income in 2022 and 2023.

You can INSTANTLY access Owen's report -- or get it emailed to you -- for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.