With the cash rate at a record low and the RBA unlikely to lift it for some time, I think investors should consider skipping savings accounts and term deposits in favour of the many quality dividend shares on offer on the local share market.
Three dividend shares that I think could be great options for retirees right now are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
Although this banking giant's shares have rallied almost 8% higher since this time last month, they are still changing hands on lower than average multiples and offer an above-average fully franked trailing 6% dividend yield. This, and its overweight exposure to the business lending market, makes ANZ Bank my favourite bank pick right now. Though, it might be best waiting for the Royal Commission final report to be handed down on Friday before picking up shares.
Coles Group Ltd (ASX: COL)
Another dividend share to consider is this newly listed supermarket giant. The Coles board has yet to advise what its dividend plans are for FY 2019, but analysts have been busy predicting this on behalf of investors. One estimate that I agree with comes from analysts at Macquarie. They expect a fully franked dividend of 65.7 cents per share in FY 2019. If this proves accurate it means its shares currently provide a forward 5.1% dividend yield.
Dicker Data Ltd (ASX: DDR)
I think that this computer software and hardware distributor is a great option for retirees due to its solid business model and generous dividend. Another bonus is that the company pays its dividend in quarterly instalments, providing retirees with a regular pay check. Dicker Data plans to pay an 18 cents per share dividend in its current financial year, which equates to a fully franked yield of 6.3% at present.
