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Smash low interest rates with these quality ASX dividend shares

As was widely expected by global markets, overnight the Federal Reserve decided to cut interest rates in the United States.

Based on recent economic data, I suspect that in the coming months the Reserve Bank of Australia will follow suit and cut the cash rate again.

This will once again weigh on the interest rates that are being offered with term deposits and savings accounts, which will be bad news for income investors.

The good news, however, is that the Australian share market is home to a large number of shares offering generous dividend yields. Three that I think income investors ought to consider buying are listed below:

Australia and New Zealand Banking Group (ASX: ANZ)

I think ANZ would be a good option for income investors that don’t already have exposure to the banking sector. Especially with the housing market recently showing signs of improvement at long last. If a rebound does occur it could lead to solid mortgage loan growth and support the bank’s earnings and dividend. At present ANZ’s shares offer a trailing fully franked 5.6% dividend yield.

Lendlease Group (ASX: LLC) 

Lendlease is an international property and infrastructure company which I think could also be a good option for income investors. Although FY 2019 was a disappointing year, I think investors should look beyond it and focus on the future. I remain confident that Lendlease has moved on and is well-placed for growth again. Especially given its ~$20 billion multi-year project with tech giant Google in the United States. At present I estimate that its shares offer a fully franked 4% FY 2020 dividend yield.

Super Retail Group Ltd (ASX: SUL)

Super Retail was a strong performer in FY 2019 despite tough trading conditions in the retail sector. So, with tax cuts and an improving housing market expected to boost investor sentiment, I’m optimistic that it will continue it positive form this year. This could put the company in a position to increase its dividend again. At present its shares offer a trailing fully franked 5% dividend yield.

And here are three high-yield dividend shares that also smash low interest rates right now.

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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 Super Retail Group Limited. 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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