The Reserve Bank may have only just cut rates, but it seems like more are on the way this year according to two of Australia’s leading financial institutions.

First it was Commonwealth Bank of Australia (ASX: CBA) stating their belief that the Reserve Bank would cut rates twice more in 2016, then came BT Investment Management Ltd (ASX: BTT) saying rates could be heading to 0%.

With cash and term deposit returns looking unattractive for investors, I believe dividend shares are going to be very popular. Telstra Corporation Ltd (ASX: TLS) and its fully franked 5.4% dividend is likely to be a sought after share, but there are potentially even better options out there that shouldn’t be missed. Here they are:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Despite its share price climbing over 13% in the last three months, Bendigo and Adelaide Bank is still expected to pay an estimated fully franked 6.8% dividend in FY 2016.

The bank is one of the cheapest in Australia when valued on a price to book ratio, which compares the current share price with the book value of net assets per share. At 0.9x book value, it is a fair discount to the sector average of 1.2x book value.

I believe there could also be significant upside for its share price if the bank is finally granted its advanced accreditation from APRA. This will allow it to lend far more on the same level of capital it holds at the moment, potentially boosting its earnings growth.

G8 Education Ltd (ASX: GEM)

G8 Education is a big favourite of mine. I’ve been impressed by the way it has managed to grow its revenue for nine consecutive years thanks to sustained demand and its growth by acquisition strategy.

This strategy does mean that the company takes on significant debt, which could of course come back to haunt it one day. But I do believe management is incredibly capable and the company’s earnings are more than sufficient to cover the current interest payments.

With an estimated fully franked dividend of 6.5% in FY 2016, I believe this is a must for income investors.

Macquarie Group Ltd (ASX: MQG)

Despite the fact Macquarie has just reported a great full year report, it still trades around 20% lower than its 52-week high. Its management team painted a great picture of the year ahead, which gives me faith to believe there is even more growth up ahead.

For this reason I feel it is quite likely that Macquarie will provide strong share price gains as well as an estimated partially franked 6% dividend.

If the Reserve Bank does cut rates, then I would expect this to be a big boost for Macquarie. Any weakening of the Australian dollar would be good news for the company as the investment bank earns around 68% of its income overseas.

If you've got time for even more fantastic dividend shares then I highly recommend taking a look at these. I expect to see strong dividends and share price gains in the future.

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Motley Fool contributor James Mickleboro has no position in any 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 Bruce Jackson.