Yesterday the Reserve Bank of Australia elected to hold the cash rate at its record low for another month.
Furthermore, the central bank pointed to the strong Australian dollar as being problematic for the local economy, effectively ruling out any chance of a rate rise in the near future.
This means that those paltry interest rates on offer from high interest savings accounts aren't likely to improve any time soon.
In light of this, if I had money in a high interest savings account I would consider putting it to work in the share market.
After all, the local market has an average dividend yield of around 4% at present.
Here are two dividend shares I would consider investing in:
Dicker Data Ltd (ASX: DDR)
This founder-led wholesale computer hardware company is easily one of my favourite dividend shares on the Australian share market. Despite its shares rising a massive 50% in the last 12 months, they still provide a yield that is even greater than that on offer from banking giant Australia and New Zealand Banking Group (ASX: ANZ). This year the company expects to pay a fully franked 16.4 cents per share dividend, equating to a yield of 6.1%. Furthermore, I expect new opportunities and revenue streams from cloud services, digital transformation, and the Internet of Things could allow the company to continue growing its dividend in FY 2018 and beyond.
WAM Capital Limited (ASX: WAM)
Whilst investors have a reasonably large number of listed investment companies to choose from on the Australian share market, my favourite would have to be WAM Capital. Thanks to a number of astute investments, WAM's portfolios have outperformed the market by some distance over the last few years. This has led to solid bottom line growth and seven successive years of dividend increases. At present the investment company's shares provide investors with a trailing fully franked 6.1% dividend, making it a great option for investors in this low interest rate environment.
