Next week the Reserve Bank of Australia will meet once again to decide whether to cut, hold, or increase the official cash rate from its record low of 1.5%.
According to the ASX and its RBA Rate Indicator tool, there is zero chance of a move higher or lower being priced in by the market at present.
Which means that there will be at least another month of low interest rates for savings accounts and term deposits.
However, unfortunately for savers, I think it will be far more than a month before we see rates change. In fact, I wouldn't be surprised to see rates stay on hold until late next year.
In light of this, I would suggest savers consider skipping savings accounts and term deposits in favour of the generous dividends on offer from shares on the local share market.
Here are five I would consider today:
Dicker Data Ltd (ASX: DDR)
In FY 2017 this leading wholesale computer hardware company plans to pay shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. Based on its current share price, this works out to being a very generous annual yield of 6.4%.
Mantra Group Ltd (ASX: MTR)
At present this leading accommodation provider's shares provide investors with a trailing fully franked 3.5% dividend. But with the tourism boom in full swing and showing no signs of slowing, I believe this dividend could grow significantly over the next decade.
Retail Food Group Limited (ASX: RFG)
A weak operating performance this year has led to a sharp sell-off of Retail Food Group's shares. Whilst this is disappointing for existing shareholders, it has created an opportunity for others to snap up shares at a very cheap price. The food and beverage company's shares provide a trailing fully franked 6.9% dividend today.
WAM Capital Limited (ASX: WAM)
This outperformance of this listed investment company has put it in a position to increase its dividend each year for seven years in a row. This means its shares yield a trailing fully franked 6% dividend today. Its final dividend goes ex-dividend on October 17.
Westpac Banking Corp (ASX: WBC)
Although I think $29 to $30 is a great entry price for investors, even at the current share price I see a lot of value in the shares of Australia's oldest bank. At present Westpac provides investors with a trailing fully franked 6.3% dividend.
