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Beat low rates with these top dividend shares

Next week the Reserve Bank of Australia will come together for the central bank’s June interest rate meeting.

Due to Australia’s low inflation and non-existent wage growth, economists are almost certain that rates will be kept on hold at the record low of 1.5% for yet another month.

In fact, almost all economists now believe that a rate hike will not take place until 2019 at the earliest.

And even when rates do eventually rise for the first time, it may be years before we see rates at a level above 4% again.

While this is great news for borrowers, it isn’t for savers or those than live off the income generated by savings accounts or term deposits.

But thankfully the Australian share market and its generous average dividend yield is here to save the day.

Here are three top dividend shares that I would suggest income investors consider picking up today:

Australia and New Zealand Banking Group (ASX: ANZ)

I think that Australia’s banks are looking very attractive now after recent declines. One of my favourites in the sector would have to be ANZ Bank due to its attractive valuation, generous dividend, and growing return on equity. At present ANZ Bank’s shares are offering investors a fully franked 5.7% dividend.

BWP Trust (ASX: BWP)

BWP is a listed managed investment scheme which invests in commercial real estate throughout Australia. I think it is one of the best ways for investors to gain exposure to one of Australia’s best retailers, Bunnings Warehouse. The majority of its properties are tenanted by Bunnings, putting BWP in a position to benefit from the retailer’s strong growth. At present BWP Trust’s shares provide a trailing 5.5% dividend.

Super Retail Group Ltd (ASX: SUL)

I think that this retailer could be a great option for investors due to its undemanding valuation and generous dividend yield. At present Super Retail’s shares offer investors a trailing fully franked 5.6% dividend. If its recent acquisition of the Macpac brand is a success, it could put the company in a strong position to grow its dividend at a solid rate over the coming years.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended BWP Trust. 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.

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