On Wednesday the Reserve Bank of Australia's governor Philip Lowe spoke at the Australia-Israel Chamber of Commerce in Western Australia.
While Mr Lowe sounded reasonably optimistic on the outlook for the Australian economy, he once again ruled out a rate hike in the near term.
This may be good news for borrowers, but it certainly isn't for savers who will have to contend with paltry interest rates from term deposits and savings accounts for some time to come.
The good news, though, is that the Australian share market has a number of great options for investors in search of a source of income.
Here are three dividend shares that I think would be great options for retirees:
Dicker Data Ltd (ASX: DDR)
I think that Dicker Data could be one of the best options for retirees in search of income. Not only does the founder-led computer software and hardware wholesale distributor have a robust business model and pay a generous dividend, it pays it in quarterly instalments. This makes it ideal for investors looking for more regular income in my opinion. In FY 2018 management expects Dicker Data to deliver a 6% increase in earnings and grow its dividend 10% year-on-year to 18 cents per share. This equates to a forward fully franked 6.3% yield based on its current share price.
WAM Capital Limited (ASX: WAM)
This listed investment company could be another great option for income investors. WAM Capital's funds have been performing very well in recent years thanks to some astute stock picking. This strong performance has allowed management to increase its dividend for an impressive eight consecutive years. Considering the LIC raised its interim dividend in February, it seems inevitable that the dividend increase run will extend to nine years in FY 2018. At present its shares provide investors with a trailing fully franked 6.1% dividend, though they have gone ex-dividend this morning.
Westpac Banking Corp (ASX: WBC)
Westpac and the rest of the banking sector have come under pressure in recent weeks due largely to the Royal Commission. I believe the share price decline that Westpac has been subjected to has been overdone and has left it trading at a very attractive price with a compelling risk/reward. This could make it well worth considering the banking giant if you do not already have meaningful exposure to the banks. Especially as its shares now offer a trailing fully franked 6.5% dividend.
