RBA keeps rates on hold: So buy these 3 dividend shares

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.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!