Unfortunately for savers, the general consensus is that Australian rates will be kept on hold at the record low of 1.5% until late 2018.
Thankfully savers can smash the paltry interest rates on offer from savings accounts with an investment in one of the many top dividend shares on the local share market.
Three I think are worth considering are as follows:
Dicker Data Ltd (ASX: DDR)
Due partly to the rapid growth of the cloud computing market and the strong demand for related hardware, I believe the wholesale distributor of computer hardware and software is in a great position to grow its bottom line and dividend at a solid rate for the next few years. This year Dicker Data plans to pay its shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. This equates to a generous annual yield of 6% based on the current share price.
Japara Healthcare Ltd (ASX: JHC)
There's no escaping the fact that Australia's population is ageing. One company that I expect to benefit from this is Japara Healthcare. As a leading aged care provider with a growing network of facilities, I believe the company is positioned perfectly to capture the expected increase in demand for aged care services over the next couple of decades. Ultimately, I expect this will allow the company to grow its dividend at a strong rate. Currently Japara's shares provide a trailing partially franked 5.4% dividend.
Super Retail Group Ltd (ASX: SUL)
Although Amazon's Australian launch could be just days away, I still believe this retailer is worth a closer look. Super Retail's management team has worked hard to prepare for this launch and I believe it has a great chance of competing successfully as a result. If it does then investors stand to be rewarded handsomely. Super Retail's shares trade at just 11x trailing earnings and provide a trailing fully franked 5.8% dividend at the current share price.
