On Wednesday the Australian Bureau of Statistics released its latest inflation data and revealed that total consumer price index (CPI) inflation over the quarter to March 31 2019 was flat compared to the prior quarter ending December 31 2018.
I believe this low inflation reading means there is a real risk of the Reserve Bank cutting the cash rate in the very near future.
In light of this, I think now would be a great time for income investors to consider picking up one of these dividend shares in order to beat low interest rates:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a wholesale distributor of computer hardware and software. Although its shares have been on fire over the last 12 months following another impressive full year result, I don't believe it is too late to make an investment. Clearly I'm not alone with this view, as earlier this week one of its directors picked up over $200,000 worth of shares. At present its shares offer investors a forward fully franked dividend yield of approximately 5.4%.
Rural Funds Group (ASX: RFF)
Rural Funds is an agriculture-focused real estate property trust which I think would be a great option for income investors. It owns a collection of high-quality assets across different industries. Due to the quality of its portfolio, long term leases, and use of rental indexation, I believe the trust is well-positioned to deliver solid distribution growth over the next decade. Its units currently offer investors a 4.8% forward distribution yield.
Westpac Banking Corp (ASX: WBC)
I think Westpac's shares could be a good option for investors with limited exposure to the banking sector. Whilst the banking sector is going through a tough time at present due to the Royal Commission and housing market downturn, I remain confident that Westpac can grow its underlying earnings and dividend at a modest rate over the coming years. This could make it worth considering, especially given its attractive trailing fully franked 6.8% dividend.
