On Tuesday the Reserve Bank will be meeting to decide on the cash rate. Whilst a cut at this meeting seems unlikely, I feel recent economic data is indicating that one will be inevitable in the coming months.
If this proves to be the case, then I suspect it could be years before rates return to normal levels again.
In light of this, instead of relying on savings accounts or term deposits for income, I would suggest you look to the share market.
Three top dividend shares that I would buy are listed below:
Aventus Retail Property Fund (ASX: AVN)
Aventus is a fully integrated owner, manager, and developer of large format retail centres (retail parks) across Australia. In the first half of FY 2019 the property fund reported an occupancy rate of 98.5%, with 16 of its 20 centres enjoying 100% occupancy. The combination of this and a 3.3% increase in like for like net property income (NPI) growth led to Aventus posting a profit of $64 million and declaring a distribution of 8.2 cents per unit. This means its units currently provide a trailing 7.2% distribution yield.
Rural Funds Group (ASX: RFF)
Another top dividend share to consider is Rural Funds. I believe the agriculture-focused real estate property trust is well-positioned to grow its distribution at a solid rate over the next decade. This is because of the quality of its portfolio, long term leases, and use of rental indexation. Furthermore, Rural Funds has opportunities to accelerate its growth through earnings accretive acquisitions. At present its units offer income investors a 4.6% forward distribution yield.
Transurban Group (ASX: TCL)
With bond yields unlikely to widen materially for some time, I expect bond proxies such as Transurban to remain popular with investors. It's not hard to see why. Due to a combination of steadily growing traffic numbers and toll prices, the toll road operator has been able to increase its distribution at a solid pace over the last decade and looks well-positioned to continue this trend for some time to come. At present its units offer a distribution yield of 4.2%.
