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Why I would buy Macquarie and these ASX dividend shares

Although the probability of a rate cut by the Reserve Bank of Australia at its meeting in September now stands at just 42%, I believe it is inevitable that at least one more is coming before the end of the year.

After which, given recent economic data, I wouldn’t be at all surprised to see further rate cuts in 2020 by the central bank.

This is likely to mean the interest rates offered on savings accounts and term deposits by Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four drop down to previously unimaginable levels.

Thankfully, the Australian share market is here to the rescue with a good number of dividend shares offering generous yields.

Three to consider buying include:

Aventus Group (ASX: AVN)

I think that income investors ought to consider this owner and operator of retail parks across Australia. Thanks to the popularity of the format with consumers, Aventus has experienced solid demand for its tenancies, leading to high occupancy levels. With the retail sector expected to improve due to tax cuts and a housing market rebound, I believe it is well-placed to grow its income and distribution at a solid rate over the coming years. At present its units offer a 6.5% distribution yield. 

Macquarie Group Ltd (ASX: MQG)

If you don’t already have exposure to the banking sector then Macquarie could be worth considering. Especially if you don’t like the big four banks. This is because Macquarie differs from the big four by generating most of its income from investment banking and asset management. And thanks to a recent pull back in its share price, it currently offers a partially franked dividend yield of 4.7%.

Super Retail Group Ltd (ASX: SUL)

I’ve been impressed with this retailer in FY 2019. Super Retail has delivered solid profit growth this year despite tough trading conditions in the retail sector. And with conditions expected to improve in FY 2020 thanks to the aforementioned tax cuts and the improving housing market, I believe its earnings and dividend could continue to grow. Super Retail’s shares offer a trailing fully franked 5.6% dividend yield at present.

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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 Macquarie Group Limited. The Motley Fool Australia owns shares of Super Retail Group 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.

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