It looks very likely that the Reserve Bank of Australia will be cutting the cash rate next week.
According to the latest cash rate futures contracts, there is a 78% probability of a cut by the central bank on Tuesday.
In light of this weak outlook for interest rates in Australia, I continue to see the share market as a great place to generate a source of income.
With that in mind, here are three dividend shares to consider buying next week:
BHP Group Ltd (ASX: BHP)
I think this mining giant would be a good option for investors that are comfortable with buying resources shares. Especially after a recent pullback in its share price means it is trading notably lower than its 52-week high. Furthermore, due to its world class operations and the high levels of free cash flow they are generating, I believe BHP is well-placed to return significant funds to shareholders again in FY 2020. Based on its last close price, I estimate that its shares provide a fully franked forward 6% dividend yield.
Stockland Corporation Ltd (ASX: SGP)
Another high yield dividend share to consider buying is Stockland. In FY 2019 the diversified Australian property company was on form and delivered a 4% increase in funds from operations. This allowed it to increase its distribution to 27.6 cents per unit. Whilst conditions in the industry have softened a touch, I remain confident it will deliver modest funds from operations and distribution growth this year. Based on this, I estimate that its shares provide a forward 6.1% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Finally, I think this telco giant could be a good option for income investors. Whilst the last couple of years have been very difficult and led to the company slashing its dividend, I believe it is now at a level which is sustainable. Another positive is that the end of the NBN rollout is not too far away, which means a return to growth could be on the horizon. Especially given the arrival of 5G and the return of rational competition in the industry. At present I estimate that its shares offer a fully franked 4.5% dividend yield.
