According to the latest ASX 30 Day Interbank Cash Rate Futures for July, the market has currently priced in an 85% probability of the Reserve Bank cutting the cash rate to 1% at its meeting next week.
This means the ultra-low interest rates that are on offer with savings accounts and term deposits are likely to go even lower in the near term.
But don't worry, because the Australian share market is home to a number of dividend shares that offer yields which smash those interest rates.
Three to consider buying this week are listed below:
Aventus Group (ASX: AVN)
Aventus is a fully integrated owner, manager, and developer of large format retail centres (retail parks). It currently owns a portfolio of 20 sites across Australia and counts some of the biggest retailers in the country such as Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH) amongst its tenants. Due to the popularity of the format with consumers, demand has been strong for its units and led to the company reporting an occupancy rate of 98.5% in the first half. Thanks to this high occupancy rate, periodic rental increases, and it high quality tenants, I feel Aventus is well-placed to continue increasing its distribution at a modest rate for the foreseeable future. Its units currently provide a trailing 6.9% distribution yield.
National Australia Bank Ltd (ASX: NAB)
With the Royal Commission out of the way and the housing market tipped to recover in the near future, things are certainly looking a lot more positive for the big four banks this year. And whilst all four banks are good options for income investors, the generous yield on offer with NAB's shares makes it well-worth considering in my opinion. Even after cutting its dividend, its shares offer an estimated forward fully franked 6.2% dividend yield.
Scentre Group (ASX: SCG)
A final high yield dividend share to consider buying is Scentre Group. It is the company that owns all the Westfield buildings in the Australia and New Zealand market. In the first quarter of FY 2019 the company revealed that customer visits per annum across its portfolio increased to 535 million. In light of this increasing traffic, it isn't hard to see why the company boasts an occupancy rate of 99.3%. Thanks to the strong demand for its properties, management expects the company to grow its FFO by 3% this year and pay a distribution of 22.6 cents per share. This equates to a forward 5.8% distribution yield.
