On Tuesday the Reserve Bank of Australia released the minutes from its latest meeting.
Unfortunately for savers and income investors, it appears as though the central bank is prepared to take rates lower again in order to stimulate the economy.
It said: “Lower interest rates would provide more Australians with jobs and assist with achieving more assured progress towards the inflation target.“
Adding: “The Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.”
In light of this, if you haven’t already done so, I think now could be a good time to consider switching funds out of savings accounts or term deposits and into the share market.
Three top income shares that I would buy are listed below:
Aventus Group (ASX: AVN)
Aventus is an owner and operator of large format retail centres across Australia. Thanks to its high occupancy rates and periodic rental increases, I believe it is well-placed to continue increasing its distribution at a modest rate over the next decade. At present its units provide a trailing 6.8% distribution yield.
Coles Group Ltd (ASX: COL)
Due to its defensive qualities, positive long-term outlook, and favourable dividend policy, I think this supermarket giant would be a great option for income investors. Especially given its focus on reducing costs materially through the use of automation. If this is a success, it could lead to solid earnings and dividend growth over the next decade. I estimate that Coles’ shares currently provide a forward fully franked 4.1% dividend yield.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a leading distributor of information technology products throughout the ANZ region. Due to a combination of increasing demand and a growing number of vendor agreements, the company has been growing its dividend at a strong rate over the last few years. This means that Dicker Data’s shares currently offer an estimated forward 4% dividend yield. I expect further solid growth over the coming years.
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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 Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.