Whilst there has been a lot of talk recently about rates rising in Australia in the near future, Reserve Bank deputy governor Guy Debelle poured cold water on speculation last week when he warned that investors had read too much into the central bank's most recent discussions.
Although this may be good news for borrowers, it certainly isn't for savers. But thankfully they do have another option.
In this low rates environment I would suggest savers skip savings accounts and invest in one of the many quality dividend shares on the Australian share market.
After all, at present the local market provides investors with an average dividend yield of 4%.
Three dividend shares I would consider buying today are as follows:
Dicker Data Ltd (ASX: DDR)
This founder-led wholesale computer hardware company has committed to paying a fully franked 16.4 cents per share dividend this year. At the current share price this equates to a whopping 6.3% yield, which is far higher than the market average and even the majority of the banks. The good news is that thanks to the growth of cloud services, digital transformation, and the Internet of Things, I believe Dicker Data will be able to increase this dividend further next year.
Japara Healthcare Ltd (ASX: JHC)
Due to Australia's ageing population I believe this leading aged care provider is in a solid position to deliver above-average earnings growth for the next decade. Especially considering the company has plans to meet the expected rise in demand for aged care services by increasing the number of places under management by 65% between now and 2025. With its shares providing a trailing fully franked 5.6% dividend, I feel it could be a great option for income investors.
Suncorp Group Ltd (ASX: SUN)
In my opinion Suncorp is the best option for investors in the insurance industry right now thanks to its new operating model. The One Suncorp strategy has already started to gain traction and helped to lift its insurance trading ratio. But management isn't resting on its laurels and believes this measure of profitability can still climb higher. I believe this bodes well for the future of its dividend, which currently provides investors with a trailing fully franked 5% yield.
