Most economists now concede that it will be late next year when the Reserve Bank finally increases the cash rate from its record low.
This could mean that it is a far away as 2020 before interest rates recover to more normal levels.
In light of this, I would suggest investors skip low interest savings accounts in favour of the many high yield dividend shares on the local share market.
Three worth considering are as follows:
Dicker Data Ltd (ASX: DDR)
In FY 2017 this wholesale distributor of computer hardware and software intends to pay a fully franked 16.4 cents per share dividend in quarterly instalments. This works out to an annual yield of 5.5%. I expect it will grow it further in FY 2018 due to the rapid growth of the cloud computing market.
Greencross Limited (ASX: GXL)
This integrated pet care company's shares currently provide investors with a trailing fully franked 3.4% dividend. Although this isn't the biggest yield on the market, I believe its market-leading position and in-store clinic roll out will still allow it to grow it an above-average rate over the coming years.
Westpac Banking Corp (ASX: WBC)
Due to recent declines I think that the shares of Australia's oldest bank are trading at an attractive level offering investors both value and income. At present Westpac's shares provide investors with a trailing fully franked 6% dividend.
