Next week the Reserve Bank will hold its October meeting and make a decision on the cash rate.
According to the latest cash rate futures, the market is currently pricing in a 67% probability of a rate cut at the meeting.
In light of this, I would suggest income investors continue to look beyond savings accounts and term deposits and focus on some of the quality dividend shares trading on the Australian share market.
Two ASX dividend shares that I would buy are listed below.
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying is Dicker Data. It is a leading wholesale distributor of computer hardware and software across the ANZ region. Dicker Data has been a very positive performer over the last few years and this has continued in FY 2020.
It recently released its first half results and revealed half year revenue above $1 billion for the first time. Even better, the company reported a 30.4% lift in net profit before tax to $42 million. In light of this, it remains on track to deliver on its plan to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.55% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
An ASX dividend share for patient income investors to consider buying is Sydney Airport. While its dividends are likely to be lower than normal in FY 2021 due to the pandemic's impact on travel and tourism, I'm optimistic that they will rebound strongly once the crisis passes. This could make it well worth buying and holding the airport operator's shares for the long term.
In FY 2021 I expect Sydney Airport to pay shareholders 15 cents per share, which equates to a 2.6% yield. However, in FY 2022 I'm confident traffic volumes will have improved enough for the company to pay the equivalent of a 4.5% dividend yield. This should then increase further in FY 2023.
