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You can beat low rates with these dividend stars

The latest weekly economic report from Westpac Banking Corp (ASX: WBC) reveals that its economics team have held firm with their cash rate estimates despite the Reserve Bank making positive revisions to growth and employment forecasts last week.

The banking giant continues to predict that the central bank will keep the cash rate on hold until at least December 2020. That means at least 25 more months for rates to stay at the record low of 1.5%.

And when rates do eventually rise, it will almost certainly take considerable time before they reach normal levels. All in all, I suspect it could be a number of years until the yields on offer from term deposits and savings accounts are anywhere close the levels available on the share market today.

In light of this, I would consider these dividend shares right now:

Adairs Ltd (ASX: ADH)

While concerns over the softening housing market have weighed on Adairs’ shares in recent weeks, it is worth noting that the home furnishings retailer continues to report solid same store sales growth. Because of this, I think Adairs’ shares are in the bargain bin right now at just 10x earnings and offering a trailing fully franked 7% dividend.

Rural Funds Group (ASX: RFF)

Another dividend share that I would consider buying this week is Rural Funds. The agriculture-focused real estate property trust is one of my favourite dividend shares due to its diverse operations and robust business model. In FY 2019 the Rural Funds board intends to lift its distribution to 10.43 cents per unit, which works out to be a forward yield of approximately 4.5%.

Westpac Banking Corp.

Instead of having money in a Westpac savings account gaining just paltry interest, I would rather have it invested in its shares. Especially after recent share price declines means that Westpac’s shares are trading on lower than normal multiples and offer a trailing 6.75% dividend. Incidentally, its shares go ex-dividend tomorrow for its final dividend, so investors need to buy shares today to qualify for it.

And this fourth dividend share could be even better. It has been tipped as a buy due to its strong long-term growth prospects.

NAMED: The best dividend share to own in 2019

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 owns shares of and has recommended RURALFUNDS STAPLED. 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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