Why it could be a good time to buy these top dividend shares

This afternoon the Reserve Bank of Australia released the minutes from its latest meeting and the omission of one line has caught the attention of the market.

In the minutes of previous meetings the central bank has said that it is “more likely that the next move in the cash rate would be up, rather than down.” However, its latest minutes has omitted this line, potentially indicating that the Reserve Bank isn’t as sure that the next change to rates will be a move higher.

If the central bank does take rates lower before they go higher, it could a very long time until Australia sees rates at normal levels again.

In light of this, I think investors should skip savings accounts and term deposits and look to the Australian share market for income. Three dividend shares that I would consider buying today are listed below:

Super Retail Group Ltd (ASX: SUL)

This retailer’s shares have taken a tumble today after being downgraded to a neutral rating by analysts at UBS on valuation grounds following a strong gain over the last three months. I think the selloff has been an overreaction, especially considering Super Retail’s shares are changing hands at 12x estimated full-year earnings and trade 6% beneath the broker’s price target. Importantly, they also provide an estimated full-year dividend yield of 5.5%. In addition to Super Retail, I think fellow retailer Accent Group Ltd (ASX: AX1) is a good option for income investors.

WAM Capital Limited (ASX: WAM)

I think that WAM Capital is one of the best listed investment companies on the Australian share market. I have been very impressed with the performance of its funds over the past few years and expect its expert stock picking to allow this strong form to continue in the future. Which should put the company in a position to raise its dividend once again. After increasing its interim dividend earlier this year, I expect WAM Capital to make it nine years of dividend increases in a row when it announces its full-year results. The listed investment company’s shares currently provide a trailing fully franked 6.4% dividend.

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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. 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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