Due to the paltry interest rates on offer from bank accounts, if I had money in a savings account I would consider putting at least some of it to work in the share market.
After all, with an average dividend yield of ~4%, investors can generate significantly better income in the share market than they can with savings accounts or even term deposits.
With that in mind, here are three dividend shares that I think would be great options for income investors:
Accent Group Ltd (ASX: AX1)
I think a great option for income investors could be this leading footwear group responsible for retail brands such as The Athlete's Foot, HYPE DC, and Platypus. At present Accent's shares are changing hands at a touch under 16x trailing earnings, which I think is good value for a company expecting to grow first half EBITDA by between 15% to 20%. I believe this will put the Accent board in a position to increase its interim dividend strongly. At present its shares offer a trailing fully franked 5.2% dividend.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate property trust that owns a large and diversified group of rural properties across Australia. I think it is one of the best real estate property trusts due to its high quality tenants and the long-term tenancy agreements it has. In addition to this, with rental indexation built into the majority of its tenancy agreements, I believe the trust is well-positioned to grow its rental income and distribution each year at a solid and predictable rate. At present Rural Funds' units offer a trailing 4.7% yield.
Westpac Banking Corp (ASX: WBC)
I think that Westpac's shares could be worth considering even after last week's strong gain following the release of the Royal Commission final report. Especially with its shares still trading on lower than average multiples and offering a very generous dividend yield. At present the bank's shares offer a trailing fully franked 7% yield.
