Current cash rate futures imply that there is a 56% chance of a rate cut at the Reserve Bank's meeting next month.
Whilst this means the market is reasonably split on February's meeting, I don't think it will be long until rates are taken lower again.
So, if you haven't already done so, I would suggest you consider switching from term deposits into dividend shares that offer far greater yields.
Three that I would think are worth considering are listed below:
BHP Group Ltd (ASX: BHP)
BHP has been a great share to own over the last couple of years. The mining giant's shares have provided investors with both generous dividends and strong gains. The good news is that I believe this trend can continue for the next couple of years at least. Especially now the U.S. and China trade war has been averted. I expect this to underpin demand for commodities and support favourable prices. This should allow BHP to generate bumper free cash flows again in the coming years. Based on this, I estimate that BHP's shares provide a fully franked forward 5.5% dividend yield.
Lendlease Group (ASX: LLC)
Another dividend share to consider buying is Lendlease. I think the international property and infrastructure company is over the worst of its issues and well-positioned to deliver solid long-term earnings and dividend growth. Especially given its plan to sell its troubled engineering division and its record pipeline of development projects. Another big positive is the ~$20 billion multi-year project with tech giant Google in the United States. At present I estimate that its shares offer a fully franked 3.6% FY 2020 dividend yield.
Westpac Banking Corp (ASX: WBC)
One of my favourite options in the banking sector right now is Westpac. This is due to its attractive valuation and very generous dividend yield. And while trading conditions continue to be tough in the sector, I am optimistic that things will improve in the near term due to improvements in the housing market. I expect a rebound in house prices to lead to solid mortgage loan growth and support its bottom line and dividends. At present its shares offer an estimated forward fully franked 6.4% dividend yield.
