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Beat low rates with these high yield dividend shares

Later today the Reserve Bank of Australia will almost certainly keep the cash rate on hold at 1.5% for yet another month.

And if the most recent Westpac Banking Corp (ASX: WBC) Weekly economic report is anything to go by, the cash rate could be left at this level for many more months.

According to the bank’s weekly report, its economics team has forecast the cash rate to remain at this level until at least December 2020.

In light of this, I would suggest investors continue to skip savings accounts and term deposits in favour of the share market and its high number of quality dividend shares.

Three that I would buy this month are listed below:

Australia and New Zealand Banking Group (ASX: ANZ)

I would much rather have my money invested in ANZ Bank’s shares than in one of its high interest savings accounts. Especially when its shares offer a trailing fully franked 5.7% yield at present. Furthermore, with the interim report from the Royal Commission not as bad as many had feared, I wouldn’t be surprised to see investor sentiment shift positively for the banks in the coming weeks.

National Storage REIT (ASX: NSR)

Thanks to its growing network of self-storage centres and its high occupancy levels, National Storage delivered a 12.5% increase in underlying earnings to $51.4 million in FY 2018. Pleasingly, due to solid demand for self-storage services and its recent $175 million equity raising to fund acquisitions, I believe the company is capable of achieving equally strong growth again this year. At present its shares offer a trailing 5.8% distribution yield.

WAM Capital Limited (ASX: WAM)

I think this listed investment company could be a great option for income investors. Thanks to its success at finding and investing in growth companies which it feels are undervalued, WAM Capital is on course to increase its full year dividend for the tenth year in a row in FY 2019. The company’s shares offer income investors a trailing fully franked 6.2% dividend.

And finally, this fourth dividend share is well worth considering as well. Like WAM Capital, it has been growing its dividend at a strong rate in recent times.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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