As I mentioned here earlier, it is looking more and more likely that the Reserve Bank will be taking the cash rate down to 0.5% over the next six months or so.
Although borrowers will be celebrating this news, income investors will no doubt be feeling extremely dejected.
If the cash rate drops to this level it could mean the interest rates on term deposits fall below the inflation level, meaning any funds invested in them actually diminishes in real terms.
The good news is that despite the share market trading close to an all-time high, there are still plenty of high-quality dividend options offering very attractive yields.
Three to consider buying next week are as follows:
Lendlease Group (ASX: LLC)
One dividend share to consider buying is Lendlease. The international property and infrastructure company's long term outlook improved greatly this month when it signed a major project agreement with Google. The ~$20 billion project will see the company develop the tech giant's landholdings in San Jose, Sunnyvale and Mountain View into mixed-use communities. I expect this to underpin solid earnings and dividend growth in the future. At present I estimate that its shares will offer a fully franked 4.6% dividend yield in FY 2020.
National Storage REIT (ASX: NSR)
National Storage is a self-storage operator that has expanded its footprint materially over the last few years thanks to development projects and its growth through acquisition strategy. Pleasingly, due to the market being highly fragmented, I believe there is still plenty of growth opportunities ahead for National Storage. This could support solid dividend growth over the next decade. I estimate that its shares provide a forward 5.5% distribution yield currently.
Super Retail Group Ltd (ASX: SUL)
A final dividend share to consider buying is this retail group. Super Retail is the company behind retail chains such as Supercheap Auto, Rebel, BCF and Macpac. It has managed to achieve solid profit growth this year despite tough retail conditions. As a result, I'm optimistic that FY 2020 will be an even stronger year if a housing market rebound and tax cuts boost consumer confidence. At present its shares offer a trailing fully franked 5.2% dividend yield.
