Earlier this month the Reserve Bank of Australia held firm with the cash rate for yet another month.
Unfortunately if you’re a saver, you may have to get used to these low rates for a long time to come with some economists tipping rates to remain on hold until late into 2020.
Luckily, the Australian share market now has an average dividend yield of 4.2% following last week’s market wobble.
Because of this, I think savers ought to consider putting their money to work in the share market rather than leaving it to gather only paltry interest in savings accounts.
Here are three dividend shares I would consider putting these funds into:
Accent Group Ltd (ASX: AX1)
Accent Group is the company responsible for popular footwear chains including The Athlete’s Foot, Platypus, and HYPEDC. It also holds the exclusive license to a number of popular international footwear brands in Australia. Its shares currently offer a generous trailing fully franked 4.8% dividend. I believe this dividend could increase again this year judging by the strong start the company has had to FY 2019 and its expansion plans.
National Storage REIT (ASX: NSR)
This self-storage service provider has a network of 133 centres throughout Australia and New Zealand. In FY 2019 it delivered a 12.5% increase in underlying earnings to $51.4 million thanks to increases in its occupancy levels and same centre revenue per available square metre. This allowed the National Storage board to declare a 9.6 cents per share distribution, equating to a trailing 5.9% yield based on its last close price.
Westpac Banking Corp (ASX: WBC)
The banks may be out of favour right now but there’s no denying that they look very attractive on current multiples and yields. With Westpac’s shares trading within touching distance of their 52-week low, they currently offer a massive trailing fully franked 7.1% dividend. And with its results and final dividend due to be announced in a few weeks, investors won’t have to wait long for its next pay out.
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 has recommended Accent Group and 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.