At present the standard variable rate on the Australia and New Zealand Banking Group (ASX: ANZ) Online Saver account stands at just 0.5% per annum, which is roughly in line with the rest of the big four.
With rates at such low levels, I think savers ought to consider skipping savings accounts and putting their money to work in the share market.
Especially given the market's average dividend yield of 4%, which is 8 times greater than the interest rate on offer in the ANZ Online Saver account.
Three dividend shares I would buy are listed below:
Dicker Data Ltd (ASX: DDR)
One of my favourite dividend shares on the Australian share market is Dicker Data. It is a founder-led wholesale distributor of computer hardware and software across Australia and New Zealand. Thanks to new vendors introduced in 2018 and the strong performance of existing vendors, Dicker Data grew its profits by 15% in FY 2018. Pleasingly, management expects more of the same in FY 2019 and recently provided revenue and profit growth guidance of 10%. It also advised that it plans to pay a 22 cents per share dividend in quarterly instalments. This equates to a forward fully franked 5.6% yield.
Rural Funds Group (ASX: RFF)
Another of my favourite dividend shares is Rural Funds. I think the agriculture-focused real estate property trust is well-positioned to continue growing its earnings and distribution at a solid rate over the next decade thanks to its high quality assets and tenants and its use of rental indexation. This year the real estate property trust expects to pay a total distribution of 10.85 cents per unit, which equates to a yield of 4.7%.
Westpac Banking Corp (ASX: WBC)
Rather than have your money in one of the big four banks' savings accounts, I would invest in their shares. I think Westpac could be one of the better options in the sector after a recent pullback in its share price. Especially after it announced the reset of its wealth strategy. This will see the bank realigning its major BT Financial Group businesses into the Consumer and Business divisions and, importantly, exiting the provision of personal financial advice. Westpac's shares currently offer a trailing $1.88 per share dividend, which works out to be a fully franked 7.2% yield.
