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.
