3 dividend shares that smash term deposits

Earlier today I mentioned that the economics team at Westpac Banking Corp (ASX: WBC) expects the cash rate to remain on hold until at least the end of 2020.

If this forecast proves accurate then it will be good news for borrowers, but disappointing news for savers that will have to contend with paltry interest rates on savings accounts and term deposits.

In light of this, I would suggest savers consider putting their money to work in the share market in one of the many quality dividend options.

Three that I would consider buying are as follows:

Rural Funds Group (ASX: RFF)

I think that Rural Funds could be a great option for income investors, especially those looking for a regular pay check. The agriculture-focused real estate property trust pays its distributions on a quarterly basis. This year the Rural Funds board intends to lift its distribution to 10.43 cents per unit, meaning its units currently offer a forward 4.65% yield.

WAM Capital Limited (ASX: WAM)

The WAM Capital share price has fallen heavily this month, which means its shares now offer a trailing fully franked 7.1% dividend today. The share price decline was driven largely by the underperformance of the listed investment company’s investment portfolio last month. In October its investment portfolio gave back all its financial year to date gains and more. This meant its portfolio was down 4.2% year to date at the last count. While this is disappointing, WAM Capital has a very experienced and talented team which I believe will quickly turn things around.

Westpac Banking Corp.

Rather than having money in a Westpac savings account, I would suggest investors consider putting it in the bank’s shares. The banking sector has come under significant pressure this year due to the Royal Commission, but with the end now in sight, I expect investor sentiment to improve and bank shares to recover slowly. So with its shares offering a fully franked trailing 7.2% dividend, I think it could be an opportune time to consider an investment.

And here are three more buy-rated dividend shares to pick up in 2019.

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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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