Next week the Reserve Bank will meet for the first time this year to decide on the cash rate. Unfortunately for savers and income seekers, the central bank will almost certainly keep rates on hold for another month.
In fact, this is likely to be the case for the whole of 2019 and perhaps even 2020. Because of this, I think investors ought to look to the share market and the high number of quality dividend shares on offer on it.
Three that I think are buys this month are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
As long as the Royal Commission final report release on Monday contains no unpleasant surprises, I think ANZ would be a great option for income investors. Due to its overweight exposure to a business lending market that continues to perform well, I believe ANZ is well-positioned to at least maintain its fully franked $1.60 per share dividend in FY 2019. If this proves to be the case, it will mean a dividend yield of 6.4% over the next 12 months.
National Storage REIT (ASX: NSR)
I think National Storage is one of the best real estate investment trusts on the Australian share market. As its name implies, National Storage is focused on self-storage assets and has a growing network of facilities across Australia and New Zealand. Although its units have rallied strongly and trade within touching distance of their 52-week high, they still provide a generous trailing 5.2% yield. I believe this distribution could grow at a solid rate over the coming years thanks to its development pipeline, growth through acquisition strategy, and increasing demand for its services.
Super Retail Group Ltd (ASX: SUL)
Although weakening consumer sentiment makes the retail sector a difficult place to invest right now, I believe the selloff of Super Retail's shares means they offer a compelling risk/reward for investors despite this. At present they are changing hands at 10x earnings and offer a trailing fully franked 6.7% dividend, potentially making the retail group behind popular store brands such as Super Cheap Auto, Rebel, and Macpac a bit of a bargain.
