As was widely expected the Reserve Bank kept interest rates on hold at the historic low of 1.5% on Tuesday. But according to analysts at Commonwealth Bank of Australia (ASX: CBA) it won't be staying at that level for long.
Analysts at Australia's largest bank continue to expect a further rate cut to 1.25% coming in November. So with rates at extreme lows investors might want to consider taking a closer look at these three dividend shares for their income needs.
G8 Education Ltd (ASX: GEM)
After recently reporting a mixed half year report, the shares of this leading childcare operator came under heavy selling pressure and dropped by around 16%. Personally I believe this sell off has been largely overdone and the results were not as bad as the market reaction would indicate. Especially considering the second half of G8 Education's year is predominantly the stronger half due to seasonal factors. With its shares now expected to provide a fully franked 8% dividend in FY 2017 according to CommSec, it has become an incredibly attractive income investment in my view.
IVE Group Ltd (ASX: IGL)
This market-leading marketing and print communications provider recently posted a full year net profit of $20.9 million, which was around 3% higher than its prospectus forecast. Another aspect that beat its prospectus forecast was its dividend. IVE Group will pay out a fully franked 8.6 cents per share final dividend, compared to its forecast of 8.4 cents. At the current share price this works out to being a fully franked 3.9% and is available to shareholders on the register at 14 September 2016.
Telstra Corporation Ltd (ASX: TLS)
Whilst this telecommunications giant may be an incredibly obvious pick, it is a great one nonetheless in my opinion. Following an almost 10% decline in its share price in the last 30 days, Telstra's shares are now expected to provide investors with an estimated fully franked 6.2% dividend in FY 2017. Although earnings growth may be starting to show signs of slowing, you can certainly count on Telstra to pay a strong dividend.
