Although 2018 has been a disappointing year for financial markets, I'm optimistic that 2019 will be much more positive.
One thing, however, that I'm not positive on is the cash rate. I suspect that this will remain on hold for the entirety of 2019 and for much of 2020.
In light of this, if I were an income investor I would consider buying these shares in 2019:
Accent Group Ltd (ASX: AX1)
Accent Group owns a number of retail store brands including Platypus and HYPE DC. Although there have been concerns that Australian retailers are struggling from lower consumer spending, this certainly hasn't been the case for Accent Group. It recently advised that trading has been "materially stronger" than expected. As a result, the company is on course to deliver a 15% to 20% increase in first half EBITDA. This could put the Accent board in a position to increase its dividend again. At present its shares offer a trailing fully franked 5.8% yield.
National Australia Bank Ltd (ASX: NAB)
Although bank shares rallied notably higher on Friday, I don't believe it is too late to snap them up. With their shares still trading on lower than average multiples and offering generous dividend yields, I think they remain great options for income investors. National Australia Bank's shares currently provide a trailing fully franked 8.2% dividend.
Rural Funds Group (ASX: RFF)
I think this agriculture-focused real estate property trust is a great option for income investors due to its diverse portfolio of assets which are spread across different regions and industries. Furthermore, with the trust boasting long-term tenancy agreements which have rental indexation built into them, I believe it is well positioned to continue increasing its dividend at a decent rate over the coming years. Rural Funds' units currently offer a trailing 4.8% yield.
