The first Westpac Banking Corp (ASX: WBC) Weekly economic report of 2019 was released this morning.
That report revealed the bank’s economics team continues to believe that the Reserve Bank of Australia will not only keep the cash rate on hold for the entirety of 2019, but also for the whole of 2020 as well.
If this forecast proves accurate, I suspect it could be as late as 2023 before rates return to more normal levels again.
In light of this, I would suggest income investors skip term deposits and savings accounts in favour of some of the high yield dividend shares on offer on the share market.
Three to consider are listed below:
Dicker Data Ltd (ASX: DDR)
The Dicker Data board intends to increase its full year dividend to a fully franked 18 cents per share this year. This equates to a yield of just under 6.4% based on the computer software and hardware distributor’s last close price. I believe this yield, its quarterly instalments, and robust business model makes it a great option for income investors.
National Storage REIT (ASX: NSR)
National Storage is one of Australia and New Zealand’s leading self-storage providers. I’ve been very impressed with the way the company’s growing network of modern centres has generated increasing amounts of revenue per available square metre. I expect this trend to continue over the coming years, putting it in a position to increase its distribution further over the coming years. Especially given its sizeable cash balance which will be used to fund acquisitions and new developments. At present the company’s units provide a trailing 5.3% distribution yield.
Rural Funds Group (ASX: RFF)
Although its units don’t provide a distribution yield as large as Dicker Data and National Storage, I still think this real estate property trust is one of the best options for income investors on the Australian share market. Rural Funds owns a growing portfolio of income generating agriculture properties across different geographies and industries. Thanks to long-term tenancy agreements which have rental indexation built into them, I believe it is well positioned to continue increasing its dividend at a solid rate over the coming years. Rural Funds’ units currently offer a trailing 4.65% yield.
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and RURALFUNDS STAPLED. 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.