With interest rates at rock bottom levels and likely to go even lower in 2020, it is near impossible to generate a sufficient income with term deposits.
But don't worry because the three ASX dividend shares listed below could be great alternatives to term deposits.
Here's why I think income investors ought to consider buying them:
Coles Group Ltd (ASX: COL)
Although it doesn't offer the biggest yield on the market, I still think that Coles would be a great buy and hold option for income investors. This is due to its defensive qualities and solid long-term growth potential thanks to its refreshed strategy. This strategy aims to reduce costs and make its operations more efficient through automation. I believe this bodes well for its earnings and dividend growth over the next decade. At present its shares offer investors an estimated forward fully franked 3.5% dividend yield.
Stockland Corporation Ltd (ASX: SGP)
Another option for income investors to consider is Stockland. It is a property group which owns, manages and develops a diverse range of assets such as retail centres and residential properties. It was a solid performer in FY 2019 and has continued its positive form in the new financial year. As a result, I feel it looks well-placed for modest growth in FY 2020 and estimate that its shares offer a generous forward 5.8% distribution yield. Interestingly, this week Morgan Stanley named it as the property company to own in 2020.
Transurban Group (ASX: TCL)
A final dividend share for income investors to consider is Transurban. This leading toll road operator owns a collection of vital roads across Australia and North America. Given the importance of these roads, increasing traffic, and periodic toll price rises, I believe Transurban is well-placed to grow its distribution over the next decade. In FY 2020 the Transurban board plans to increase its distribution to 62 cents per security. This equates to a forward 4% distribution yield.
