Next Tuesday the Reserve Bank of Australia will meet to discuss interest rates once again.
The central bank will almost certainly keep rates no hold at this meeting, meaning savers will have to contend with low interest rates for a little while longer.
In fact, with most economists not expecting a rate rise until 2019, the low interest rates being offered on savings accounts could be here for a long time to come.
In light of this, I think that savers ought to skip savings accounts and look to the Australian share market instead. After all, with an average dividend yield of 4%, it is going to be years until rates rise enough to compete with this.
Three top dividend shares I would consider buying today are listed below. Here's why I like them:
Telstra Corporation Ltd (ASX: TLS)
This telco giant's share price has been heavily sold off over the last 12 months amid concerns about its future profitability and of course its decision to cut its dividend. I think the cut was a necessary evil and has put the company in a better position now to find new drivers of growth. At the current price I think Telstra's shares offer compelling value. This year Telstra intends to pay a 22 cents per share dividend, equating to a fully franked 6.8% yield.
WAM Capital Limited (ASX: WAM)
I think that WAM Capital is one of the best listed investment companies on the Australian share market. Over the years I have been very impressed with the performance of its funds and the way management has returned money to shareholders. In FY 2018 the company's strong performance has put it in a position to make it nine years in a row of dividend increases after lifting its interim dividend to 7.75 cents per share last month. This means its shares provide a trailing fully franked 6.1% dividend at present.
Westpac Banking Corp (ASX: WBC)
The Royal Commission has weighed heavily on the big four banks' share prices over the last few weeks. This brought Westpac's shares down to a 52-week low at one stage and a level that I think is highly attractive. While there is a danger that the Royal Commission could uncover something scandalous, I remain confident that it will find no skeletons in the closet. Which could make it worth picking up shares today, especially as they offer a trailing fully franked 6.5% dividend.
