Mr Evans expects the central bank to cut “in June, August and November to push the cash rate from 1.5% to 0.75% and to hold at that level through 2020.”
In light of this, if you’re an income seeker, I think now would be a great time to consider investing in one of the many high yield dividend shares that the ASX has to offer.
Three that I would buy in June are as follows:
Adairs Ltd (ASX: ADH)
The recent election result and APRA’s plan to reduce the mortgage serviceability threshold look set to be big positives for the housing market. This could be great news for companies with exposure to it such as this home furnishings retailer. So with the company already performing well and its shares changing hands at just 11x earnings and offering a trailing fully franked 7% dividend yield, now could be an opportune time to make an investment.
Australia and New Zealand Banking Group (ASX: ANZ)
With rates likely to go notably lower this year, I would sooner have my money invested in a bank’s shares than in one of its savings accounts. My pick of the group right now is ANZ due to its strong capital position, cost cutting opportunities, and exposure to SME lending. I believe this has left it well-positioned to grow its underlying earnings at a modest rate over the next few years and at least maintain its $1.60 per share dividend. At present this equates to a fully franked 5.7% dividend yield.
Transurban Group (ASX: TCL)
Another dividend share that could be worth considering next week is this toll road giant. Due to a combination of acquisitions, increasing demand for its roads, and rising toll prices, I believe Transurban is well-placed to grow its earnings and distribution at a solid rate over the long term. At present its units provide investors with a trailing distribution yield of 4.3%
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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 and has recommended Transurban Group. 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.