With the probability of a rate cut by the Reserve Bank next month rising to 82% last week, it looks as though interest rates are going to be lower for longer.
Whilst this is good news for borrowers, it is yet another blow for savers and income investors.
The good news, though, is that the Australian share market is home to a good number of shares offering juicy dividends.
Three dividend shares I would consider buying are listed below:
Accent Group Ltd (ASX: AX1)
I think this footwear-focused retailer could be a good option for income investors right now. This is due to its generous dividend yield and positive outlook. In FY 2019 Accent posted a 22.2% jump in statutory net profit after tax to a record of $53.9 million. The good news is that Accent has started the new financial year strongly and appears well-placed to increase its dividend further in FY 2020. At present its shares offer a trailing fully franked 5% dividend yield.
Stockland Corporation Ltd (ASX: SGP)
Stockland is a diversified Australian property company which was on form again in FY 2019. Over the 12 months the company reported a 4% increase in funds from operations (FFO), allowing it to increase its distribution to 27.6 cents per unit. Although the new financial year is expected to be softer due to low wage growth and challenging economic conditions, the market has forecast a small increase in its distribution to 27.8 cents per unit. This works out to be a forward 6.2% distribution yield.
Wesfarmers Ltd (ASX: WES)
With the housing market continuing to improve, I think it is worth considering an investment in this conglomerate's shares. This is because with its Bunnings, Kmart, and Target brands all having exposure to the housing market, Wesfarmers looks well-positioned to deliver solid earnings and dividend growth over the coming years. I estimate that Wesfarmers will pay a FY 2020 dividend of $1.53 per share, which equates to a fully franked 3.85% dividend yield.
