The Reserve Bank may have only just cut the cash rate, but investors are already betting on the central bank making another cut in August.
According to the latest ASX 30 Day Interbank Cash Rate Futures, the market has priced in a 25% chance of a rate cut to 0.75% at the Reserve Bank's meeting in August.
In light of this, if you haven't done so already, now could be a good time to consider switching from savings accounts and term deposits to some of the quality dividend shares trading on the Australian share market.
Three dividend shares that I would buy are listed below:
Aventus Group (ASX: AVN)
Aventus Group is an owner and operator of 20 large format retail centres across Australia. Due to the popularity of the format with consumers, Aventus has enjoyed a sky high occupancy rate again in FY 2019. Thanks to the combination of this high occupancy rate and periodic rental increases, I feel the company is well-placed to continue increasing its distribution at a modest rate over the next decade. Its units currently provide a trailing 6.9% distribution yield.
Coles Group Ltd (ASX: COL)
I'm a big fan of this supermarket giant due to its defensive qualities and positive long-term outlook. In respect to the latter, I believe the company's focus on reducing costs materially through the use of automation has positioned it well to grow both its earnings and dividend at a solid rate over the next decade. I estimate that Coles' shares provide a forward fully franked 4% dividend yield at present.
Telstra Corporation Ltd (ASX: TLS)
Another quality dividend share to consider buying is Telstra. I'm a fan of the telco giant right now due to the positive start it has made with its key T22 strategy. This strategy includes significant cost savings and productivity benefits which look set to offset weakness in other areas of its business. Together with the launch of 5G and the return of rational competition in the telco market, I believe Telstra could return to modest underlying growth in FY 2020. I estimate that Telstra's shares currently offer a forward fully franked 4.1% dividend yield.
