The Reserve Bank looks likely to keep rates on hold on Tuesday, but a move lower continues to be expected early in 2020.
Whilst this will be good news for borrowers, it is a bit of a disaster for those using term deposits and savings accounts as a source of income.
But don't worry because these dividend shares can help you beat the rate cuts:
Aventus Group (ASX: AVN)
I think Aventus is a good option for income investors in this low interest rate environment. It is a leading owner and operator of large format retail centres across the country. This format remains very popular with consumers, which has underpinned strong demand for tenancies and led to Aventus enjoying a sky-high occupancy rate. I feel this leaves it well-placed for further FFO growth in FY 2020. In light of this, I estimate that its shares offer a forward 6.1% distribution yield.
Coles Group Ltd (ASX: COL)
With an estimated forward fully franked 3.5% dividend yield, Coles doesn't have the biggest yield. However, due to its positive long-term growth outlook, I expect this to grow at a strong rate over the next decade. This is thanks to the combination of its refreshed strategy, defensive qualities, sales growth, and the return of rational competition in the industry. Overall, I think this makes the supermarket operator a great buy and hold option for income investors.
Transurban Group (ASX: TCL)
Another quality dividend share to consider is Transurban. It is one of the world's leading toll road operators with a collection of roads across Australia and North America. Given the importance of these roads, their strong pricing power, and the growing number of vehicles using them, I believe Transurban is well-placed to increase its distribution at a solid rate each year over the next decade. In FY 2020 the company intends to increase its distribution to 62 cents per security. This equates to a forward 4.1% distribution yield.
