With the Australian dollar hovering around the 80 U.S. cents level and looking unwilling to give back recent gains any time soon, I feel it is very unlikely that the Reserve Bank of Australia will be contemplating raising rates any time soon.
Unfortunately this isn't great news for savers. The paltry interest rates on offer from term deposits and savings accounts look like they will be here for some time.
In light of this, I would suggest savers consider skipping term deposits and savings accounts in favour of the Australian share market.
After all, with an average dividend yield of 4%, it certainly smashes other interest bearing options.
Here are four dividend shares I would consider today:
Mantra Group Ltd (ASX: MTR)
Although the Australian dollar has strengthened recently, I don't expect it to have much of an impact on the tourism boom that we are experiencing at the moment. Which is great news for this leading accommodation provider. I expect strong demand for its rooms will result in above-average earnings and dividend growth. Mantra's shares provide a trailing fully franked 3.5% dividend.
Suncorp Group Ltd (ASX: SUN)
This leading insurer and regional bank currently provides a generous trailing fully franked 4.9% dividend. Thanks to the early success of its new operating model, I believe Suncorp is in a good position to grow this pay out reasonably significantly over the next few years. This could make it an opportune time to invest.
Telstra Corporation Ltd (ASX: TLS)
This telco giant's shares have fallen significantly in the last 12 months over concerns that it may need to cut its dividend because of weaker-than-expected NBN margins and increased competition in the mobile space. Whilst there is a danger this could happen, I remain optimistic that its aggressive cost-cutting program could allow it to maintain its current dividend. It provides investors with a trailing fully franked 7.5% yield today.
Westpac Banking Corp (ASX: WBC)
Despite a decent gain by its shares in the last few weeks, in my opinion Westpac is still the best option in the banking sector at the moment based on valuation and yield. At present its shares provide a trailing fully franked 5.9% dividend.
