Although the Reserve Bank of Australia has only just cut rates down to a record low, the market is already tipping a further rate cut in the near future.
According to the ASX 30 Day Interbank Cash Rate Futures for November, there is currently a 48% probability of a cut to 0.5% next month.
Whilst I’m not overly convinced that the central bank will cut as soon as that, I feel it is inevitable that another rate cut is coming.
In light of this, now might be a good time to consider replacing your term deposit with one of these top dividend shares:
Coles Group Ltd (ASX: COL)
Whilst its shares don’t provide the biggest yield on the local share market, I think this supermarket giant could be a good option because of its solid growth prospects and dividend policy which aims to pay out between 80% and 90% of its earnings to shareholders. In respect to its growth prospects, Coles look well-placed thanks to its cost reductions program, expansion opportunities, and the return of rational competition. I estimate that its shares currently provide a fully franked forward 3.5% dividend.
Scentre Group (ASX: SCG)
Scentre Group could be a good option to replace your term deposit. I believe the owner of Westfield properties in the ANZ region is well-positioned for growth thanks to the robust demand for its tenancies and the increasing number of consumers that visit its centres. At its last update management revealed that there were 535 million visitors passing through its doors each year and each visitor was spending longer in its centres. At present its units offer a trailing 5.7% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another good option for income investor could be the operator of Sydney Airport. As the main gateway into Australia, it looks set to benefit from increasing international tourism and a potential recovery in domestic tourism in 2020. At present Sydney Airport’s shares offer a generous trailing 4.8% dividend yield.
And here are three more dividend shares that have been named as great ways to beat the RBA's rate cuts.
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 2020.
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."
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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.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended 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.