Although interest rates were kept on hold yesterday, there is still a chance the Reserve Bank of Australia could cut rates lower in 2017. Whilst a drop to 1.25% would be great for borrowers, it would be terrible for savers.
Luckily though there are a good number of high-yield dividend shares on the ASX which I believe are a great way to create a source of income in this low interest environment.
Here are three dividend shares which I feel could be great options for retirees in 2017:
Flight Centre Travel Group Ltd (ASX: FLT)
It's been a tricky year for the travel agent, but I believe the majority of the headwinds it has faced this year are only temporary. As things return to normal and the company expands into China and India, I expect it will return to growth again. This could make it an opportune time to invest in the company, especially with its shares expected to provide a fully franked 4.7% dividend in FY 2017 according to CommSec.
Monash IVF Group Ltd (ASX: MVF)
The shares of this leading IVF specialist are forecast to pay investors a full franked 4.9% dividend in the next 12 months. Although the company has experienced a touch of weakness in the industry early on in FY 2017, it still expects first half profit to rise by 7%. At just 15x full year earnings, I believe Monash IVF provides investors with a solid risk/reward ratio.
Tassal Group Limited (ASX: TGR)
Falling production in both Chile and Norway has driven salmon prices up almost 50% in 2016. The problems inflicting production in these nations don't look likely to abate anytime soon, which could keep prices higher for longer. This is great news for Tassal which has invested heavily to increase its own production. In FY 2017 its shares are predicted to provide a fully franked 4.7% dividend. If salmon prices remain high then Tassal could be set for a number of years of strong growth in my opinion.
