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3 generous dividend shares for income investors

On Tuesday the Reserve Bank of Australia kept rates on hold once again. This marked the second full year of rates being kept on hold at the record low of 1.5%.

Considering recent economic data and the current outlook for inflation, it seems quite likely that rates will still be at 1.5% for a third year.

In light of this, I continue to believe that investors would be better off skipping savings accounts and term deposits in favour of one of the many dividend stars on the share market.

Three which I would consider buying this week are listed below:

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust which owns a diverse range of agricultural assets. It has recently added to its portfolio through the $52.7 million acquisition of Australian feedlots located in Queensland and New South Wales owned by JBS Australia. These facilities have a combined capacity of 150,000 Standard Cattle Units which represents approximately 15% of Australia’s lot fed cattle capability. I believe this acquisition has put Rural Funds in a strong position to continue growing its earnings and dividend at a solid rate over the coming years. Its shares currently offer a trailing 5.2% dividend which is paid in quarterly instalments.

Super Retail Group Ltd (ASX: SUL)

The shares of this retail conglomerate behind brands including Macpac, Rebel, and Super Cheap Auto currently provide investors with a forward fully franked 5% dividend. I believe this dividend could grow at a fair pace over the coming years if its Leisure segment turnaround strategy is a success. All eyes will be on the segment this month when it releases its results. The segment has been a drag on its performance of late, but management believes the acquisition of the Macpac brand will turn things around.

Westpac Banking Corp (ASX: WBC)

This banking giant’s shares currently offer investors a trailing fully franked 6.4% dividend. While there are concerns about the potential impact of the Royal Commission and a cooling housing market on the bank’s performance, I feel that this has been priced into its shares already. As such, I think they offer a decent risk/reward for investors at the current level.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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