According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, Australia’s oldest bank continues to forecast another rate cut by the RBA.
The report reveals that Westpac still has a cut to a record low of 0.5% pencilled in by March 2020. This is likely to mean further cuts to the interest rates on offer with savings accounts and term deposits.
In light of this, I would suggest investors switch out of them and into dividend shares which offer vastly superior yields. Three ASX dividend shares to consider buying are listed below:
Lendlease Group (ASX: LLC)
Lendlease is an international property and infrastructure group with operations in Australia, Asia, Europe and the Americas. I think it could be a great option for income investors thanks to its decent yield and positive growth prospects. At end of FY 2019 its development pipeline was approaching $100 billion in project value, which management believes is underpinning a very strong long term outlook. Presently, I estimate that its shares offer a fully franked 4% forward dividend yield.
National Storage REIT (ASX: NSR)
Another good option for income investors to consider buying is National Storage. It is a self-storage-focused real estate investment trust which owns a network of 168 centres throughout the ANZ region. Whilst this makes it one of the largest in the region, management still sees plenty of room for growth through developments and acquisitions. I expect this to lead to further solid income and distribution growth for a number of years to come. At present its shares provide a 5.2% trailing distribution yield.
VanEck Vectors Australian Banks ETF (ASX: MVB)
If you wish to invest in bank shares like Westpac but can’t decide which one, then this ETF could be for you. The VanEck Vectors Australian Banks ETF allows investors to not only get a piece of the big four banks, but also the regionals and Macquarie Group Ltd (ASX: MQG). Its units currently offer a trailing 5.3% partially franked yield.
5 stocks under $5
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*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended National Storage REIT. 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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