With the cash rate looking likely to remain at the record low of 1.5% for some time to come, borrowers will no doubt be especially pleased.
However, the same cannot be said for savers and income investors who have had to contend with low rates for a number of years now.
The good news for them, though, is that the Australian share market is one of the most generous in the world when it comes to dividends.
Three dividend shares that I think would be great ways to beat low rates are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
I think all big four banks are in the buy zone right now, but ANZ remains my first pick due to its exposure the solid performing business lending market. While I would suggest investors hold fire until the release of the Royal Commission final report on Monday afternoon, if that report includes no nasty surprises then I think income investors ought to consider snapping up shares. Especially as they currently provide a trailing fully franked 6.2% dividend.
Caltex Australia Limited (ASX: CTX)
I believe this fuel retailer's shares could be a good option for income investors that are willing to make a buy and hold investment. At present Caltex's shares offer a trailing fully franked 4.4% dividend. While this isn't the biggest yield on offer on the local market, I believe its dividend could grow strongly over the next decade as the company embarks on a major expansion of its convenience store network.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate property trust which owns a growing portfolio of income generating rural properties across different geographies and farming industries including almonds, cattle, cotton, macadamias, poultry, and vineyards. As its properties have high quality tenants with long-term tenancy agreements which have rental indexation built into them, I believe Rural Funds is in a great position to continue increasing its distribution at a solid and predictable rate. Its units currently offer a trailing 4.7% yield.
