Although the Federal Reserve raised interest rates over in the United States last night, I think it will be a long time until we see the Reserve Bank of Australia doing the same here.
Whilst this is great for borrowers, it is disappointing news for retirees who use the interest from their savings as a source of income.
So with interest rates likely to remain at a record low for some time, I think retirees should look to the share market for a source of income.
Three high-yielding dividend shares which I believe are worth considering today are listed below:
Coca-Cola Amatil Ltd (ASX: CCL)
While consumers are cutting down on sugary drinks and leading healthier lifestyles, I don't believe this spells the end of Coca-Cola Amatil. Especially as the company's unrivalled and extensive distribution network gives it the ability to put whichever drinks consumers want within arm's reach. I wouldn't expect explosive growth from the company, but I believe it will grow earnings enough in the future to keep increasing its dividend. At present its shares provide a trailing fully franked 5.1% dividend.
Telstra Corporation Ltd (ASX: TLS)
With the telco giant's shares down sharply over the last 12 months, I feel now is an opportune time for retirees to snap up shares. While increased competition and lower NBN margins have weighed heavily on its share price, I remain confident that it still has the edge over its rivals thanks to its mobile networks and market-leading position. Although earnings growth is likely to be lower than average, I feel there is upside potential from its cost-savings plan. Telstra's shares provide a trailing fully franked 7.1% dividend.
Westpac Banking Corp (ASX: WBC)
Although it has rallied higher in the last few days, I still see a lot of value in the shares of Australia's oldest bank. Especially with its trailing fully franked 6% dividend. As I have said previously, even if the Budget levy forced a slight cut to its dividend, it would still provide one of the biggest yields on the market. Providing Australia stays clear of a housing market crash, I think Westpac would be a great addition at the current share price.
