Last week the Reserve Bank of Australia held the cash rate at 1.5% and appeared to suggest that the next move with rates could as easily be down as up.
While this is music to the ears of borrowers, it's another blow to savers and income investors who will have to contend with paltry rates on interest-bearing instruments for some time to come.
Thankfully the Australian share market is here to the rescue with a large number of quality dividend shares offering generous yields.
Three that I think are worth considering next week are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
Last week the Royal Commission final report was released and the general consensus was that it was not as bad as many feared it could have been. As a result, bank shares rallied notably higher. ANZ was no exception, climbing almost 8% during the week. Despite this strong gain, the bank's shares still provide a trailing fully franked 6% dividend. I believe this makes it a great option for income investors that have little exposure to the banking sector.
BHP Group Ltd (ASX: BHP)
I think that this mining giant could be well worth considering if you're comfortable with buying resources shares. At present BHP's shares provide a trailing fully franked 4.5% dividend, excluding its special dividend. Thanks to favourable commodity price movements and its low cost operations, I expect BHP to generate high levels of free cash flow in FY 2019, allowing this dividend to increase further.
Premier Investments Limited (ASX: PMV)
The Premier Investments share price has fallen over 30% since peaking at $20.16 in September. Investors appear concerned that the retail conglomerate's growth may have slowed due to weakening consumer sentiment and the impact of the Brexit on its UK-based operations. While its shares are likely to remain under pressure until its next update, I believe value is emerging. The shares of the company behind the Smiggle and Peter Alexander brands are currently changing hands at 19.5x trailing earnings and offer a trailing fully franked 4.5% dividend.
