With a mixed outlook for the Australian economy, the RBA recently noted it has room to lower rates if necessary.
That means the record 2.5% cash rate could go even lower!
For savers, with their money in term deposits and ‘high’ interest accounts, 2015 doesn’t look so good.
However, popular Australian dividend stocks are yielding in excess of 5.5% per annum grossed-up. At a time when the rates on term deposits and savings accounts are offering between just 3% and 4%.
Unfortunately, at today’s prices, both blue-chips appear to be fully valued.
Shares in Super Retail have been heavily sold off following a period of weakness in its leisure businesses, including BCF and Ray’s Outdoors. Whilst it may be a bumpy ride in the near-term, analysts expect a fully franked dividend of 39.4 cents per share in the next 12 months. At $7.68, the company trades on a forecast grossed-up dividend yield of 7.3%.
RCG Corp is the owner of The Athlete’s Foot and Podium Sports. It also has exclusive distribution agreements for leading footwear brands such as Saucony and Merrell. It is forecast to pay a grossed-up dividend of 9.8% in the next year.
Lastly, M2 Group is a leading internet services provider and owner of brands such as Dodo, Primus, Eftel and Commander. Despite a strong track record of outperformance, the stock isn’t expensive and trades on a grossed-up dividend yield of 5.1%.
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These 3 stocks could be the next big movers in 2020
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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the companies mentioned.
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