4 dividend shares I’m backing on Melbourne Cup day

The result of the Melbourne Cup is likely to steal all the headlines today, but there is another important event taking place today – the RBA’s interest rate decision.

Although official rates are expected to remain at 1.5% for another month, analysts will be focused squarely on the RBA’s assessment of the recent inflation data as this could provide an indication of where interest rates might head next.

In any event, rates aren’t expected to change a great deal for a while longer yet and this means investors can expect the underwhelming returns from cash and term deposits to linger for sometime to come.

With that in mind, here are four shares that income investors might want to consider right now:

Retail Food Group Limited (ASX: RFG)

Retail Food Group is enjoying a period of strong earnings momentum and this is likely to translate into higher dividends over the next couple of years. Analysts are forecasting a 30 cent per share dividend in FY17, which puts the shares on a forecast dividend yield of 4.5%.

Macquarie Group Ltd (ASX: MQG)

Macquarie delivered a surprise increase in its interim dividend last week and investors can expect a slight increase in its final dividend if market conditions remain stable. The company is well placed should the Australian dollar fall over the course of the year and is offering investors a plump dividend yield of 5.2%.

FlexiGroup Limited (ASX: FXL)

Shares of FlexiGroup have been under the pump over the last few years but the company is starting to show some encouraging signs under the guidance of its new CEO. The company expects to return to double-digit earnings growth in FY18, but in the meantime, investors can expect to earn a dividend yield of 6.2%.

Greencross Limited (ASX: GXL)

The veterinary company remains on track to meets its FY17 expansion targets and has seen a pick-up in like-for-like sales in recent months. While the forecast dividend yield of 2.9% isn’t massive, Greencross operates in a fast-growing sector of the economy that is expected to provide the company with a number of exciting growth opportunities moving forward.

Forget companies cutting dividends like BHP and Rio Tinto when you can get GROWING dividends.

This "dirt cheap" company. is growing like gangbusters, and trading on a fat dividend yield, FULLY FRANKED. With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016. Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

Motley Fool contributor Christopher Georges owns shares of Macquarie Group Limited and Retail Food Group Limited. The Motley Fool Australia owns shares of Retail Food Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.