This afternoon the Reserve Bank of Australia opted to keep rates on hold at the record low of 1.5% for yet another month.
In fact, this is the 19th consecutive meeting that the central bank has chosen to keep the cash rate on hold amid low levels of inflation.
On the subject of inflation, the Reserve Bank's stated that:
"Inflation remains low. The recent inflation data were in line with the Bank's expectations, with both CPI and underlying inflation running marginally below 2 per cent. Inflation is likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018."
As a result, the Reserve Bank "judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time".
Judging by this statement I think it is safe to say that there is unlikely to be a rate hike this year. Which means the paltry interest rates on offer with savings accounts are here to stay for some time to come.
But never fear, there are numerous high yielding dividend shares on the Australian share market to provide you with a source of income. Three that I like are as follow:
Accent Group Ltd (ASX: AX1)
At present this footwear retailer's shares provide investors with a trailing fully franked 4.9% dividend. I believe that the strength of its exclusive licensed brands will protect it from the arrival of Amazon in Australia and lead to solid earnings and dividend growth over the next few years.
National Storage REIT (ASX: NSR)
This leading self-storage operator plans to pay a distribution of between 9.6 cents and 10 cents per share in FY 2018. Based on the middle of this guidance range, National Storage's shares provide a forward yield of 6%. Considering the company is experiencing strong demand for its services and has a development pipeline which includes 11 new developments and several new expansion projects, I think this dividend could continue to grow in FY 2019 and beyond.
WAM Capital Limited (ASX: WAM)
This listed investment company is on course to lift its dividend for a ninth consecutive year in FY 2018. And thanks to some expert stock picking and the strong performances of its funds, I believe there's a good chance it will make it ten in a row next year. WAM Capital's shares currently offer a trailing fully franked 6.4% dividend.
