Earlier this month the Reserve Bank of Australia kept rates on hold for yet another month.
Unfortunately for savers this looks set to be the case for many more months, meaning we will be living in this low interest environment for some time to come.
Because of this, I think savers ought to look to the share market instead of generating just paltry interest from savings accounts.
Three high yield dividend shares I would want in my portfolio are listed below:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a computer software and hardware wholesale distributor which I think would be a great option for income investors. I’ve been very impressed with the way the company has performed over the last few years and expect things to be equally positive over the coming years thanks to new vendor agreements and its robust business model. Management intends to pay an 18 cents per share fully franked dividend in quarterly instalments this year, which equates to a 5.9% yield based on its last close price.
Rural Funds Group (ASX: RFF)
Last week Rural Funds released its full-year results which revealed a solid 26% increase in total adjusted funds from operations to $32.3 million. Although this growth wasn’t as strong on a per unit basis due to the issue of new units to fund acquisitions, the board was still able to increase its distribution by 4% to 10.03 cents. Pleasingly, with management confident about the year ahead, it has provided distribution guidance of 10.43 cents per unit in FY 2019. This means that the real estate property trust’s shares provide a forward yield of 4.9% based on its last close price.
Westpac Banking Corp (ASX: WBC)
The banking sector has come under a lot of pressure this year amid concerns over the Royal Commission and cooling housing market. I believe this has left the shares of the big four trading at very attractive levels. My favourite of the four is Westpac due to the fact its shares are trading on lower than average multiples and provide a market-beating dividend yield. At present its shares offer a trailing fully franked 6.2% dividend.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and RURALFUNDS STAPLED. 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.