Later today the Reserve Bank of Australia is widely expected to keep rates on hold at the record low of 1.5% for yet another month.
In fact, the general consensus is that rates will be staying exactly where they are long into 2018.
Whilst this is good news for borrowers, it certainly isn't for savers.
In light of this, I would suggest that savers beat low interest rates with an investment in one of these three high-yield dividend shares.
Super Retail Group Ltd (ASX: SUL)
Super Retail is the company behind retail brands such as Supercheap Auto and Rebel Sport. Unfortunately its shares have just gone ex-dividend which means investors will have to wait at least six months until its next payout. But in my opinion it could be worth the wait. With its performance improving greatly, I believe the company will be in a position to grow its dividend this year. Currently its shares provide a generous trailing fully franked 6% dividend.
WAM Capital Limited (ASX: WAM)
I think this listed investment company is one of the best dividend shares on the market. WAM Capital has increased its dividend for seven years in a row, which means that at present its shares provide investors with a trailing fully franked 6.1% dividend. Pleasingly, thanks to the outperformance of its funds this year, I believe there is a strong probability that WAM will make it eight years in a row in FY 2018.
Westpac Banking Corp (ASX: WBC)
I would much rather buy shares in the banks than have my money in one of their savings accounts. After all, the trailing fully franked 6% dividend on offer with Westpac is vastly superior to any of its accounts or term deposits. While there are concerns that the bank levy could lead to a dividend cut, I'm optimistic that its out of cycle rate rises will offset it. At the current share price I would class Westpac as a buy.
