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These ASX dividend shares will help you beat low interest rates in 2020

Yesterday I wrote about how the chief economist of National Australia Bank Ltd (ASX: NAB) believes that the cash rate can still go lower from here.

In fact, the banking giant has pencilled in two further rate cuts next year. The first will be in February and the other will be in June, bringing the cash rate down to 0.25%.

I think there is a real chance of this occurring. Which will be bad news for income investors, who will have to contend with low interest rates for many more years.

But don’t worry because these ASX dividend shares can help you beat low rates:

Helloworld Travel Ltd (ASX: HLO)

One dividend share that I think income investors ought to look closer at is Helloworld. It is an integrated travel company which I believe can grow strongly over the next decade. It has started FY 2020 in a positive fashion and recently revealed first quarter EBITDA growth of 7.7%. The good news is that management appears confident this solid form can continue over the remainder of FY 2020. At present its shares offer a trailing fully franked 4.5% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another of my favourite ASX dividend shares to consider buying is Sydney Airport. It has grown its dividend at a solid rate over the last decade and I believe it is well-placed to do the same over the next decade. This is thanks to its position as the main gateway into and out of Australia, increasing international tourism, and its strong pricing power. At present Sydney Airport’s shares offer a trailing 4.2% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

With its outlook improving greatly, I think now could be a good time for income investors to pick up Telstra’s shares. Last month the telco giant provided an update at its investor event and revealed that it is on course to strip out a total of $2.5 billion in costs by 2022. It also confirmed that is on track to deliver on its EBITDA and free cash flow guidance in FY 2020. I believe this makes its 16 cents per share dividend more than safe. This pay out works out to be a 4.3% dividend yield.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Helloworld Limited. 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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