On Tuesday the Reserve Bank of Australia will meet again to discuss the cash rate.
Most economists agree that the central bank will not only keep rates on hold this month, but also for the rest of the year.
Because of this I would skip savings accounts for a source of income and consider one of the many top dividend shares available to investors on the Australian share market instead.
Three that I think income investors ought to consider are listed below:
Aventus Retail Property Fund (ASX: AVN)
While I do have slight concerns that this retail property group could get caught up in a bond proxy selloff in the future, this potential eventuality may be two to three years down the line. Which could make it worth considering Aventus today, especially given the sizeable yield on offer. The large format retail centre (retail park) operator expects to grow funds from operations by as much as 3% this year. I estimate that this will result in a full-year distribution of 16.3 cents per share, which equates to a yield of almost 7.4%.
Collins Foods Ltd (ASX: CKF)
Collins Foods is one of the largest KFC franchisors in the world. And while it may not offer the biggest dividend yield on the local market, I believe that it has the potential to grow significantly in the future. This is due to its recent expansion into an underpenetrated European market. If this proves to be a success then I expect it to provide Collins Foods with the potential to grow its earnings at an above-average rate for the next decade. Based on the last close price, Collins Foods' shares provide a trailing fully franked 3.1% dividend.
Westpac Banking Corp (ASX: WBC)
The Royal Commission has weighed heavily on the banks over the last couple of months and has left Westpac's shares trading close to their 52-week low. With the Commission on a hiatus for three weeks and then returning with a focus on agribusiness, I suspect the pressure on the banks could start to ease. This could make it an opportune time to snap up the shares of Australia's oldest bank, especially considering they offer a trailing fully franked 6.8% dividend currently.
