With the Reserve Bank keeping rates on hold this week and showing no signs of lifting them in the near future, it appears as though the paltry interest rates on offer from term deposits and savings accounts are here to stay.
In light of this, I would suggest investors consider putting their money to work for them in the share market.
After all, with an average dividend yield of 4.1%, the local share market provides significantly better yields than any high interest savings accounts.
Three dividend shares I think are worth considering today are listed below:
Suncorp Group Ltd (ASX: SUN)
At present the shares of this leading insurer provide a trailing fully franked 4.8% dividend. Pleasingly, I believe that Suncorp could grow this dividend at a solid rate over the next few years thanks to its new One Suncorp strategy. I have been impressed with the early progress of the strategy and its impact on its insurance trading ratio, and expect it to result in further improvements in the company's performance this year.
Telstra Corporation Ltd (ASX: TLS)
The shares of this telco giant currently provide a trailing fully franked 7.1% dividend. While competitive pressures and weaker-than-expected NBN margins could weigh on its shares in the short-term, I expect cost-savings and its market-leading position will allow the company to excel in the long-term.
Westpac Banking Corp (ASX: WBC)
With its shares down sharply in the last three months, Australia's oldest bank provides investors with a trailing fully franked 6.1% dividend. Whilst there are concerns that the bank may have to cut its dividend back slightly due to the impact of the budget levy, even if it does the yield on offer will still be significantly higher than the market average. I think this makes it a great option for income investors today.
