Next week the Reserve Bank of Australia will meet once again to discuss the cash rate.
At present the market has priced in a ~50% chance of another rate cut at the meeting according to the latest cash rate futures contracts.
Whilst I'm not convinced the central bank will make a move this month, I remain certain that a cut to 0.75% is coming within the next few months.
This will be great news for borrowers, but not for savers and income investors who will have to contend with even lower interest rates.
For those investors I have picked out three top dividend shares that could help them smash low interest rates. Here's why I like them:
Aventus Group (ASX: AVN)
Due to its very generous distribution yield, I think Aventus could be a good option for income investors. It is an owner and operator of retail parks across Australia. Thanks to the popularity of the format with consumers, its high occupancy rates, and periodic rental increases, I believe the company is in a good position to continue growing its distribution over the coming years. At present its units provide a trailing 6.8% distribution yield. It does have a large number of leases up for renewal in the next couple of years, but given the improving conditions in the retail sector, I'm not overly concerned by this.
Rural Funds Group (ASX: RFF)
Rural Funds is an agriculture-focused property group which I think is amongst the best dividend options on the local market. I'm a big fan of the company due to its high quality assets and its positive long-term distribution growth potential. The latter is thanks to its long-term tenancy agreements and periodic rent increases which I believe will allow Rural Funds to grow its distribution at a solid rate long into the future. The company's units currently offer investors a 4.4% forward distribution yield.
Transurban Group (ASX: TCL)
Another of my favourites is Transurban. Over the last decade the toll road operator has consistently been able to grow its distribution at a solid rate thanks to increasing traffic on its roads, expansions and acquisitions, and toll road price increases. The good news is that I remain confident that Transurban is well-positioned to continue this trend over the next decade, potentially making it a must buy dividend share. I estimate that its units currently offer a forward distribution yield of 4%.
