At present the interest rate on a Commonwealth Bank of Australia (ASX: CBA) NetBank Saver account offers savers a 0.50% per annum standard variable rate, which is roughly in line with what’s on offer from the rest of the big four.
This is significantly lower than the current inflation rate of 1.8%, which means any money in one of these savings accounts is actually losing value in real terms.
In light of this, I would suggest investors consider skipping these accounts in favour of the large number of quality dividend shares on offer on the Australian share market.
Three that could help you smash low interest rates are listed below:
Aventus Retail Property Fund (ASX: AVN)
I think this fully integrated owner, manager, and developer of large format retail centres could be a great option for income investors. Aventus owns a total of 20 centres across the country and counts many of the largest retailers in Australia such as Bunnings, The Good Guys, and Officeworks as tenants. In the first half of FY 2019 the property fund posted a 6.3% increase in funds from operations to $47 million, which enabled the Aventus board to increase its distribution to 4.16 cents per unit. This means that its units currently offer a trailing 7.2% yield.
National Storage REIT (ASX: NSR)
One of my favourite dividend shares on the local market is this self-storage owner-operator. National Storage has a network of 146 centres and a growing pipeline of acquisition and development opportunities. I expect the combination of robust demand for its services and inorganic growth means National Storage is well-positioned to grow its profits and distribution at a solid rate for the next few years. This year the REIT plans to pay a full year distribution of 9.6 cents to 9.9 cents per unit, which equates to a yield of between 5.6% to 5.8%.
Super Retail Group Ltd (ASX: SUL)
A final dividend share to consider is the company behind retail brands such as Macpac, Rebel, and Super Cheap Auto. The retail sector may be struggling from weak consumer sentiment at the moment, but this hasn’t stopped Super Retail from growing its profits at a solid rate. I believe this has positioned the company well to increase its dividend at a solid rate in FY 2019. At present its shares offer a trailing fully franked 6% dividend.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.