Overnight the Federal Reserve decided to cut rates again in the United States.
Whilst a rate cut by the Reserve Bank next month looks unlikely, it seems inevitable that one will be coming in the near future.
But don’t worry if you’re an income investor, because the dividend shares listed below can help you beat low rates. Here’s why I would buy them:
Accent Group Ltd (ASX: AX1)
One dividend share that I would consider buying today is Accent Group. It is a footwear-focused retail group which owns a number of popular retail store brands such as HYPE DC and Platypus. Despite weak consumer spending, Accent Group was a strong performer in FY 2019 and delivered solid profit and dividend growth. I’m optimistic this will continue in FY 2020 thanks to its strong brands, growth plans, and further margin expansion. Accent’s shares currently provide a trailing fully franked 5.4% dividend yield.
Stockland Corporation Ltd (ASX: SGP)
Stockland is an Australian property company which owns, manages and develops a diverse range of assets such as retail centres, residential properties, and retirement communities. It was a solid performer in FY 2019 and has started the new financial year in a positive fashion. Stockland recently revealed an improvement in residential sales, an increase in comparable retail MAT growth, continued up-weighting in logistics, and progress in its commercial property development pipeline during the first quarter. I believe this leaves it well-placed to increase its distribution modestly this year. At present its shares offer a generous trailing 5.6% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A final dividend share for income investors to consider buying is Sydney Airport. I’m a big fan of the airport operator due to its strong market position, pricing power, and long history record of dividend increases. The good news is that I believe Sydney Airport can continue to grow its dividend over the coming years thanks to increasing international tourism, its position as the main gateway into Australia, and improving domestic tourism. At present Sydney Airport’s shares offer a trailing 4.7% dividend yield.
But it isn't just the three dividends above that can you beat low rates. These top ASX dividend shares are highly rated by analysts for a reason.
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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 Accent 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.