On Tuesday the Reserve Bank of Australia opted to keep rates on hold at the record low of 1.5% for yet another month.
And although the central bank has lifted its forecasts for economic growth, most economists are still ruling out a rate rise any time soon.
In light of this, I continue to believe that investors would be better off skipping savings accounts and term deposits in favour of the share market.
Three income shares that I would consider are listed below:
Dicker Data Ltd (ASX: DDR)
This leading computer software and hardware wholesale distributor could be a great option for income investors due to its robust business model, high levels of insider ownership, and generous dividend yield. Based on the 18 cents per share dividend that it intends to pay this year, Dicker Data’s shares offer a fully franked 6.3% yield. Another bonus with Dicker Data is that it pays its dividend in quarterly instalments.
National Storage REIT (ASX: NSR)
National Storage is one of the largest storage providers in ANZ with a growing network of facilities. Due to its high occupancy levels, increasing demand, and growth through acquisition strategy, I believe the trust is well-positioned to continue increasing its distribution over the coming years. At present the company’s units provide a trailing 5.7% distribution.
Super Retail Group Ltd (ASX: SUL)
Due to a post-annual general meeting selloff, this retail group’s shares currently offer an extremely generous trailing 6.7% dividend. The reason for the selloff was the surprise retirement of its long-serving and popular CEO. While a change at the top can be disruptive, I believe the selloff has been severely overdone. Especially now its shares are priced at just 10x earnings and all its brands have delivered solid same stores sales growth so far in FY 2019.
And don't miss this fourth dividend share which has been tipped to grow strongly over the next few years.
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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Super Retail Group 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.