Australia’s oldest bank has forecast the cash rate to be down to 0.25% by June. After which, it sees it remaining at this level until at least the start of 2022.
In light of this, I think income investors need to prepare for rates to be lower for longer.
But don’t worry, because the three dividend shares listed below can help you overcome these low rates. Here’s why I like them:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail centres in Australia. I think it could be a good option for income investors in 2020. Due to a record number of leasing deals thanks to strong demand from many of Australia’s biggest retailers, Aventus is currently enjoying a sky high occupancy rate. As a result, management is confident it can deliver a 3% lift in its distribution to 17.1 cents per unit in FY 2020. This equates to a 6% distribution yield.
National Storage REIT (ASX: NSR)
National Storage is one of the largest self-storage providers in Australia and New Zealand. It has been growing its income and distribution at a solid rate over the last few years despite the housing market downturn. So, with the housing market rebounding strongly, I expect demand for its services to grow over the coming years. Combined with acquisitions and developments, this should underpin further distribution growth for a number of years to come. I estimate that its units offer a generous distribution yield of 4.9%.
Telstra Corporation Ltd (ASX: TLS)
I think this telco giant could be a very good option for income investors. Whilst it has been a disappointing performer in recent years, the tide is finally turning and its outlook is becoming increasingly positive. So much so, I suspect that a return to earnings growth isn’t too far away. But in the meantime, I believe its 16 cents per share dividend is sustainable from its current free cash flows. This equates to a fully franked 4.1% dividend yield.
And here are three dividend shares that Edward Vesely recommends you buy to beat low rates.
When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
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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 Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and National Storage REIT. 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.