Earlier today I wrote about how weak inflation and wage growth in Australia has me believing that a rate hike by the Reserve Bank could be off the cards until late in 2019.
If this proves to be the case then the paltry interest rates on offer from savings accounts and term deposits are likely to be here for a long time to come.
Fortunately for income investors the local share market has a great number of quality dividend shares that provide generous yields.
Three of my favourites right now are listed below:
National Storage REIT (ASX: NSR)
As the largest self-storage operator in Australia/New Zealand with 127 centres, I believe National Storage is well-positioned to benefit from the growing demand for storage services. This rising demand could lead to high occupancy levels and ultimately solid profit and distribution growth. Another positive is the company's development pipeline which includes 11 new developments and several new expansion projects. In FY 2018 management has guided to a distribution of between 9.6 and 10 cents per share, equating to a yield of approximately 6%.
Shriro Holdings Ltd (ASX: SHM)
I think it is fair to say that this kitchen appliance and consumer products company is flying under the radar of most investors right now. Which I feel could make it a great time to snap up shares, especially as they trade at just 9x trailing earnings and offer a trailing fully franked 8% dividend. If the company's international expansion is a success, I expect it will be positioned perfectly to continue its solid profit and dividend growth for many years to come.
Telstra Corporation Ltd (ASX: TLS)
This telco giant's share price decline over the last 12 months has been a disaster for long-term shareholders, but for non-shareholders I think it is a buying opportunity. Especially as its plan to pay a 22 cents per share annual dividend equates to a fully franked 7.1% yield at the current share price. I remain confident that Telstra will be able to maintain this dividend for at least the next couple of years, after which a lot will depend on its cost cutting success, the arrival of 5G internet, and NBN margins.
