Given the state of wage growth and inflation in Australia, most economists have ruled out a rate hike by the Reserve Bank in 2019.
In fact, many don't expect the central bank to be able to make a move on rates until late 2020, which means the ultra-low interest rates on offer with bank accounts and term deposits could be here for some time to come.
In light of this, I would suggest investors look at the many dividend options on the Australian share market for a source of income.
Three high yielding shares that I would consider are listed below:
BHP Group Ltd (ASX: BHP)
This mining giant's shares currently offer income investors a trailing fully franked 4.7% dividend. While this dividend alone is attractive in this low interest environment, shareholders are about to receive another pay check from BHP. Following the successful completion of its U.S. shale assets divestment, on January 10 the company's shares will trade ex-dividend for its US$1.02 (A$1.45) per share fully franked special dividend. This special dividend equates to a yield of 4.2% and will be paid to shareholders on January 30.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a founder-led ICT distributor that specialises in servicing small and medium sized businesses with a specific focus on presales capabilities, value added services, and emerging hybrid end to end technology solutions. I think its attractive valuation, robust business model, positive growth prospects, and high levels of insider ownership make it a great option for income investors. This year the company intends to pay an 18 cents per share, equating to a fully franked yield of just under 6.4%.
Westpac Banking Corp (ASX: WBC)
I think that this banking giant is well worth considering if you don't already have meaningful exposure to the banking sector. Although trading conditions are not easy for the banks right now due to tighter credit conditions and a cooling housing market, I remain confident that Westpac is well-positioned to at least maintain its $1.88 per share dividend in FY 2019. This dividend equates to a yield of approximately 7.7% at present.
