Smash low interest rates with these high yield ASX dividend shares

Westpac Banking Corp (ASX:WBC) shares could be a great way to smash low interest rates…

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According to the latest cash rate futures contracts, dovish comments by the Reserve Bank of Australia on Tuesday means the market has now priced in a 92% probability of a cash rate decrease to 1.25% at next month's meeting.

Whilst this is good news for borrowers, it is disappointing for savers and income investors who will have to contend with low interest rates for a long time to come.

But don't be too disheartened because there are a number of quality dividend shares on the Australian share market which smash low interest rates.

Three which I think would be great options right now are listed below. Here's why I like them:

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company behind the Supercheap Auto, Rebel, BCF, and Macpac brands. It has been a strong performer over the last 12 months despite the tough trading conditions in the retail sector. So with tax cuts and an improving housing market expected to result in improving consumer sentiment and spending, I believe it is well-positioned for growth. At present its shares offer a trailing fully franked 5.6% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another top option for investors to consider buying is this telco giant. Thanks to cost cutting opportunities, improving mobile average revenue per user (ARPU), and the ACCC's decision to block the TPG Telecom Ltd (ASX: TPM)-Vodafone Australia merger, I believe Telstra is well-placed to grow its bottom line modestly over the next few years. All in all, I believe this means its 16 cents per share fully franked dividend is highly sustainable. This works out to be a 4.5% dividend yield based on its last close price.

Westpac Banking Corp (ASX: WBC)

Instead of having your money in one of its savings accounts or term deposits, I would invest these funds into this banking giant's shares. After all, they currently provide a very generous trailing fully franked 6.6% dividend yield despite this week's share price rally. And with the Morrison government's policies looking good for the housing market and APRA scrapping a key mortgage rule, things certainly look a great deal better for the banking sector right now.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

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