The Motley Fool

I would buy NAB and these ASX dividend shares

Next week it is looking increasingly likely that the Reserve Bank of Australia will cut the cash rate down to a record low of 0.75%.

After which, by May of next year the market believes another cut will have taken place, bringing the cash rate down to just 0.5%. This can be seen on the graph below.

Judging by both recent economic data and comments out of the central bank, I suspect that these forecasts will prove accurate. Which means that income investors are going to have to contend with ultra-low rates for some time to come.

But don’t worry because the three dividend shares below offer generous yields to solve your income needs:

Lendlease Group (ASX: LLC) 

I think this international property and infrastructure company is worth considering. FY 2019 was admittedly a disappointing year, but I remain confident that the worst is behind it now and think investors should focus on the future. Especially given its recent announcement of a~$20 billion multi-year project with tech giant Google in the United States. At present I estimate that its shares offer a fully franked 3.7% FY 2020 dividend yield.

National Australia Bank Ltd (ASX: NAB)

Although this banking giant’s shares have recently hit a 52-week high, I still see a lot of value in them and believe they could provide good total returns for investors over the coming years. Especially if the housing market rebounds and drives solid mortgage loan growth in the near term. Based on its interim dividend being annualised, NAB’s shares currently offer a 6.2% fully franked dividend yield.

Super Retail Group Ltd (ASX: SUL)

Due to its attractive valuation, generous dividend yield, and positive outlook, I think Super Retail is a good option for income investors right now. At present its shares offer a trailing fully franked 4.8% dividend yield, but I believe it is well-positioned to increase this in FY 2020 thanks to the improving outlook for the retail sector due to tax cuts and a potential housing market rebound.

NEW! Top 3 Dividend Picks for 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 National Australia Bank Limited and 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.

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!