Last week the Reserve Bank of Australia opted to keep interest rates on hold at the record low of 1.5% for yet another month.
While this is great news for borrowers, it certainly isn't for savers who will have to contend with low rates on savings accounts and term deposits for a little while longer.
But thankfully the share market is here to help. With a great number of dividend shares offering above-average yields, I think savers ought to skip savings accounts and term deposits and consider putting their money to work in the share market.
Here are three dividend shares I would consider investing in today:
Japara Healthcare Ltd (ASX: JHC)
Australia's population is ageing and I think this aged care provider is in a strong position to profit from it. In order to capture the growing demand for aged care services Japara intends to expand its capacity substantially over the next few years. I expect this to result in strong earnings and dividend growth over the next decade. Currently its shares provide a trailing fully franked 6.3% dividend.
Retail Food Group Limited (ASX: RFG)
It certainly has been a disappointing year for the shareholders of this food and beverage company. Its shares are down a whopping 37% year-to-date. Thankfully I think its shares have bottomed now, making it a great time to consider an investment. Especially as they provide a very generous trailing fully franked 6.7% dividend.
Telstra Corporation Ltd (ASX: TLS)
Despite the sizeable cut to its dividend, opinion remains largely divided on how sustainable the telco giant's dividend is. While some believe the proposed 22 cents per share dividend will need to be cut further, I remain confident that it will be maintained for at least the next three years. This could make it well worth considering its fully franked 6.3% FY 2018 dividend today.