Following a weak inflation reading earlier this week, any hope of interest rates rising in the near future appear to have been dismissed. Whilst this is great news for borrowers, it certainly isn't for savers.
So instead of keeping money in a supposedly high interest savings account, I think investors would be better off investing it in one of the many high quality dividend shares the Australian share market has on offer.
Here are three worth considering:
Flight Centre Travel Group Ltd (ASX: FLT)
This travel agent may have had a tough time of late, but I believe it has made key investments in emerging markets which could provide the company with significant long-term growth. Together with its focus on cost-cutting, I don't believe the future is as bleak as many make it out to be. So with its shares providing a trailing fully franked 4.3% dividend, now could be a great time to pick up shares.
Mantra Group Ltd (ASX: MTR)
With inbound tourism growing at a rapid pace, I expect demand for this leading accommodation provider's rooms to increase. As demand increases I believe Mantra will enjoy higher occupancy levels and room rates, leading to solid profit growth. This should put the company in a position to continue to grow its trailing fully franked 3.7% dividend.
Telstra Corporation Ltd (ASX: TLS)
Thanks to a sharp drop in the telco giant's share price this year, its shares now provide a trailing fully franked 7.3% dividend. While there are concerns over TPG Telecom Ltd (ASX: TPM) launching its own mobile network and stealing market share, I believe Optus and Vodafone are likely to suffer the most. With such a big yield on offer, I feel Telstra offers income investors a compelling risk/reward.
