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Beat low rates with these quality dividend shares

Tonight the U.S. Federal Reserve will meet to decide on interest rates once again.

According to CME Group’s Fedwatch Tool, the market has priced in a 94.4% probability that rates will rise to the 2% to 2.25% target range.

Unfortunately, it is unlikely that the Reserve Bank of Australia will follow suit when it meets to discuss the cash rate on Tuesday of next week.

In fact, most economists have ruled out a rate rise in Australia for the rest of the year and all of 2019.

Because of this, I think savers would be better skipping savings accounts and term deposits in favour of some of the top dividend shares on offer on the Australian share market.

Here are three to consider:

Dicker Data Ltd (ASX: DDR)

This founder-led computer software and hardware wholesale distributor is one of my favourite dividend shares on the ASX. Not only does it offer an extremely generous yield, but its strong business model and growth opportunities put it in a position to continue growing this over the coming years. This year the Dicker Data board intends to declare a total dividend of 18 cents per share, equating to a yield of 6%.

National Storage REIT (ASX: NSR)

I think National Storage is a high quality and low risk investment option for income investors to consider. The company’s growing network of self-storage centres looks set to expand further in FY 2019 thanks to a recent $175 million equity raising. I expect this expansion and its high occupancy levels to put the company in a position to grow its distribution again in FY 2019. At present its shares offer a trailing 5.7% distribution yield.

Westpac Banking Corp (ASX: WBC)

I would much rather have my money invested in this banking giant’s shares than in one of its high interest savings accounts. At present Westpac’s shares offer a trailing fully franked 6.7% dividend. Due to its decision to lift its variable rates recently, I feel confident that this dividend will at least be maintained in FY 2019.

Not keen on Westpac? Then this dividend share could be a great alternative to the banks.

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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!

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended National Storage REIT. 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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