The Motley Fool

Transurban and these ASX dividend shares can help you smash low interest rates

On Tuesday the Reserve Bank of Australia will meet once again to make a decision on the cash rate.

Whilst the market is confident that there will be no changes made this month, it is worth noting that  a cut to 0.75% has been priced in by November by the market.

After which, a further cut to 0.5% is expected in March according to current cash rate futures contracts. This can be seen on the chart below from the ASX.

In light of this, I continue to believe that the dividend shares listed below would be better options for income investors than term deposits right now. Here’s why I like them:

National Storage REIT (ASX: NSR)

National Storage is one of the largest self-storage providers in the ANZ market with a total of 164 centres. Thanks to a combination of increasing demand, development projects, and its growth through acquisition strategy, I believe National Storage is well-positioned to grow its income and distribution at a solid rate over the coming years. At present its shares offer a forward yield of around 5.3%.

Scentre Group (ASX: SCG)

Scentre Group is the owner of all the Westfield properties in the ANZ region. Due to the quality of these assets and the strong demand it has for tenancies, I believe the company is well-placed to grow its distribution at a steady rate over the next few years. At present its units offer a trailing 5.5% distribution yield.

Transurban Group (ASX: TCL)

Another dividend share to consider is this toll road giant. I think it could be a great option for income investors due to the quality of its assets, its strong pricing power, and long track record of distribution increases. In FY 2020 the company intends to increase its distribution by 5.1% to 62 cents per security, which equates to a forward 4.15% forward yield.

NEW! Analyst Names Top 3 Dividend Picks for FY 2020

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia has recommended National Storage REIT and Scentre Group. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!