It looks as though interest rates are going to remain at low levels for some time to come. But don't worry, because dividend shares remain a great way to earn a passive income.
But which dividend shares should you buy? Two quality options that analysts rate highly are listed below:
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Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first option for income investors to look at is ANZ. With the banking sector appearing to be over the worst of its issues, now could be a good time to invest if you don't already have exposure to it. Especially given the booming housing market, rampant cost cutting, and the relaxing of responsible lending rules. This should be supportive of growth over the medium term.
Another positive is ANZ's very strong capital position. This is likely to lead to some generous dividend payments and share buybacks over the coming years.
One broker that is very positive on ANZ is Morgans. It has an add rating and $34.50 price target on the bank's shares.
Morgan is also forecasting a $1.45 per share dividend in FY 2021 and a $1.65 per share dividend in FY 2022. Based on the current ANZ share price of $29.35, this represents fully franked yields of 4.9% and 5.6%, respectively.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share to look at is Super Retail. It is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.
Super Retail has been a very positive performer during the pandemic. For example, in February the retailer revealed a 23% increase in first half sales to $1.78 billion and a 139% increase in first half underlying net profit after tax to $177.1 million. Key drivers of this impressive profit growth were strong like for likes sales, stellar online sales, and margin expansion.
Goldman Sachs is a fan of Super Retail and has a buy rating and $15.00 price target on its shares. Its analysts are expecting the company to have a strong second half and to reward shareholders with a special dividend.
Goldman is forecasting fully franked dividends of 84 cents per share (including the special dividend) in FY 2021 and then 59 cents per share in FY 2022. Based on the latest Super Retail share price of $13.00, this represents 6.4% and 4.5% yields, respectively.
