With the Reserve Bank expected to keep rates on hold at the record low of 1.5% until at least next year, I think investors should skip savings accounts and term deposits and look to the share market for sources of income.
Three high-quality dividend shares with big yields that I would buy today are listed below:
Suncorp Group Ltd (ASX: SUN)
At the current share price I think this leading insurer is worth taking a closer look at. Not only is it the cheapest amongst its peers, but it provides an industry-beating trailing fully franked 5% dividend. With its new One Suncorp strategy showing a lot of promise, I believe it has put the company in a good position to grow earnings and its dividend at a solid rate over the next few years.
Telstra Corporation Ltd (ASX: TLS)
The telco giant's share price has fallen sharply this year, leaving it at a level which I think is a great entry point. Especially as it now provides a trailing fully franked 7% dividend. Although there are concerns over a price war following the decision by TPG Telecom Ltd (ASX: TPM) to launch its own mobile network, I feel rivals Optus and Vodafone are the ones with the most to lose. As such, I think Telstra's dividend, increasing data consumption, and extensive mobile network make it a great option for investors.
WAM Capital Limited (ASX: WAM)
In my opinion WAM Capital is one of the best listed investment company's on the Australian share market. I've been very impressed with its ability to outperform the market over the last few years and expect more of the same in the future. This should put it in a good position to continue growing it dividend. Which, although its shares are trading close to their all-time high, still provides investors with a generous 6% fully franked yield.
