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Smash low rates with these quality income shares

On Tuesday the Reserve Bank of Australia released the minutes from its meeting at the start of the month.

Unfortunately for savers and income investors, there was nothing in the release to hint that rates might rise sooner than the market expects.

In light of this, I think savers ought to be prepared for the cash rate to remain on hold at the record low of 1.5% for some time to come.

In order to escape the low interest rates being offered by savings accounts and term deposits, I would suggest investors consider putting their money to work in the share market.

Three top income shares I would look at buying this week are as follows:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a leading founder-led computer software and hardware wholesale distributor which I think would be a great option for income investors. This year the Dicker Data board has provided dividend guidance of 18 cents per share. This dividend equates to a 6.2% yield based on its last close price. One director that clearly sees value in its shares at this level is its chief operating officer Vladimir Mitnovetski. He has been buying shares on-market this month.

National Storage REIT (ASX: NSR)

Another great option could be this real estate investment trust which provides self-storage services through its network of 133 centres in Australia and New Zealand. This network is likely to expand again in FY 2019 after the company recently raised $175 million for acquisitions. If it does acquire new centres and continues to enjoy high occupancy levels at its existing centres, it could put the trust in a position to grow its distribution again this year. At present National Storage’s units offer a trailing distribution yield of 5.7%. Incidentally, the trust’s units were upgraded to an accumulate rating by Ord Minnett this week. The broker has placed a $1.85 price target on its units.

Rural Funds Group (ASX: RFF)

Rural Funds Group is a real estate investment trust which has a diverse portfolio of assets comprising 44 properties across six different agricultural sectors. In FY 2018 the company delivered a 29% increase in earnings to $44 million, allowing its board to increase its distribution to 10 cents per unit. This year management has predicted organic earnings growth of 4% and plans to pay a distribution of 10.43 cents per unit. This equates to a forward yield of 4.9% based on its last close price.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and RURALFUNDS STAPLED. 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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