Last week the Reserve Bank of Australia finally made a move and cut the cash rate down to a record low of 1.25%.
Unfortunately for savers, this doesn't look as though it will be the only cut the central bank makes this year.
According to the latest ASX 30 Day Interbank Cash Rate Futures, the market has now priced in a 51% probability of another rate cut at the July meeting.
This would bring the cash rate to a lowly 1% and put further pressure on the interest rates being offered with savings accounts and term deposits.
In light of this, if you're reliant on these for a source of income, I think now could be a good time to consider switching to dividend shares.
Three top dividend shares that I would buy are listed below:
Accent Group Ltd (ASX: AX1)
I think that Accent Group is one of the best dividend shares in the retail sector. It is the footwear-focused retail group behind retail chains including Athlete's Foot, HYPE DC, and Platypus and owns the exclusive licence to a number of popular international brands in Australia. It has delivered strong growth in FY 2019 and looks well-placed to continue this trend over the medium term thanks to margin expansion, new store openings, and online sales growth. At present its shares offer a trailing fully franked 6% dividend yield.
Rural Funds Group (ASX: RFF)
Rural Funds owns a high quality portfolio of diversified agricultural assets including poultry farms, cattle production, vineyards, and almond and macadamia orchards. Thanks to a combination of its ultra-long tenancy agreements, quality tenants, and periodic rental increases, I believe Rural Funds is well-positioned to grow its distribution at a solid rate over the next decade. At present, its units offer investors a 4.6% forward distribution yield.
Westpac Banking Corp (ASX: WBC)
Instead of having your funds in a Westpac savings account, I would consider putting them into the banking giant's shares. After all, with a trailing fully franked dividend yield of 6.6%, its shares are amongst the most generous on the market. Furthermore, with things looking a lot more positive for the housing market, Westpac could soon see an uptick in mortgage loan growth. This would be a big boost to the bank's bottom line.
