If you're looking for a way to beat low interest rates, then the share market could be a great place to start.
Due to the market volatility, there are a large number of quality shares offering investors generous yields.
Three which I rate highly are listed below. Here's why I would buy them when the volatility eases:
Coles Group Ltd (ASX: COL)
One of my favourite dividend shares is this supermarket operator. I like Coles due to its solid growth prospects, cost cutting, focus on automation, and defensive qualities. In respect to the latter, I think the company has demonstrated its defensive qualities during the coronavirus crisis. While other retailers are struggling, Coles' supermarkets are currently busier than they are over the Christmas period. Combined, I believe Coles is well-placed to grow its earnings and dividend for some time to come. At present its shares offer an estimated forward 4% dividend yield.
DEXUS Property Group (ASX: DXS)
DEXUS is an Australian real estate group which is focused on owning, managing, and developing office, industrial, and retail properties. I think DEXUS is a good option for income investors due to its long leases which have fixed increases built into them. Another positive is the favourable conditions in the Sydney office market, which should support its earnings and distributions. I estimate that its shares currently offer a forward 4.9% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share to consider buying is this telco giant. I think Telstra's shares would be a good option for income investors due to its defensive qualities, its T22 strategy, improving conditions in the telco market, and generous yield. In respect to the latter, at present Telstra is paying a 16 cents per share fully franked dividend. I'm confident this remains sustainable and that no further cuts will be necessary. This equates to a fully franked dividend yield of 4.6%.
