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Beat low interest rates with these dividend shares

With Reserve Bank of Australia deputy governor Guy Debelle signalling on Friday that the central bank was in no rush to increase rates, it looks as though the paltry interest rates on offer from term deposits and savings accounts won’t be improving any time soon.

As a result, I think investors would be better off focusing on the share market instead. After all, there are a good number of shares that provide generous dividends.

Two dividend shares which I think are worth considering this week are listed below:

Think Childcare Ltd (ASX: TNK)

Although it may not be as well-known as industry giant G8 Education Ltd (ASX: GEM), this fledgling childcare centre operator certainly wants to change that. At present Think Childcare operates 38 centres throughout Australia. But thanks to having a pipeline of 62 newly developed, purpose built childcare centres around Australia waiting to be acquired progressively over the next five years, the company has a significant runway for growth. I expect this to result in above-average earnings and dividend growth for the foreseeable future. Currently Think Childcare’s shares provide a trailing fully franked 4% dividend.

WAM Capital Limited (ASX: WAM)

Based on performance, yield, and value, I think that WAM Capital is currently the best listed investment company on the Australian share market. Over the last few years I’ve been very impressed with the way WAM Capital’s portfolios have consistently outperformed the market and expect more of the same from the company in the future. This should put the company in a position to continue to increase its dividend. Which at present provides investors with a trailing fully franked 5.9% yield

Finally, this third dividend share could also be a great way to beat low interest rates as well.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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