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Forget your savings account! These 2 ASX dividend shares offer much better returns

Sebastian Bowen

As everyone with a bank account would know by now, the Reserve Bank of Australia (RBA) has made sure that the returns you can expect from ‘safe’ investments like cash are now very negligible. Interest rates are at record lows and could well be going even lower in 2020.

My favourite remedy for this? You guessed it – ASX dividend shares. Where else could you reasonably expect a 4.5% cash return on your money these days?

So in that vein, here are 2 ASX dividend shares that I think are looking attractive today.

APA Group (ASX: APA)

APA is a utilities company that owns and operates a large chunk of the Australian east coast natural gas grid. As such, it is essentially an infrastructure stock, and (as you would expect) has a desirably defensive earnings base – and by extension a rock-solid dividend yield.

On current prices this yield is sitting at 4.32%, which is enough reason in itself to consider this company. But it’s the fact that APA has increased its dividend every year since 2004 (even through the GFC) that’s really gotten my attention. Such a solid history of returns gives me confidence that this pattern will continue. Thus, APA is (in my opinion) a top income stock to watch!

Genworth Mortgage Insurance Australia (ASX: GMA)

Genworth is one of the ‘big four’ banks biggest (but most under-appreciated) partners – offering lender’s mortgage insurance, amongst other financial services. For exposure to the financials space outside the big banks, I think Genworth is a fantastic option to consider. Australia’s historical love of property is showing no signs of slowing down, and as long as this continues, Genworth will be a major beneficiary.

GMA shares currently offer a 5.08% dividend yield, which often comes with full franking (although not always). Thus, I think it would fit very nicely into a well-rounded dividend portfolio.

Foolish takeaway

I think these 2 ASX dividend shares are today offering far better returns than any cash you might have sitting in the bank or in a term deposit. Both companies offer solid, inflation-beating yields and both have shown strong share price growth throughout 2019.

The post Forget your savings account! These 2 ASX dividend shares offer much better returns appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019