The lack of wage growth and inflation in Australia is pointing to the cash rate staying on hold at the record low of 1.5% for much of next year.
Unfortunately for savers this means that the low interest rates on offer with savings accounts and term deposits are here to stay.
In light of this, I would suggest investors skip savings accounts and consider one of the many dividend shares on the local share market with generous yields.
Three to consider are:
Super Retail Group Ltd (ASX: SUL)
I think the retailer behind brands such as Super Cheap Auto and Rebel Sport is a great option for investors right now. At the current share price the retailer's shares provide a trailing fully franked 5.6% dividend.
Telstra Corporation Ltd (ASX: TLS)
This telco giant may have disappointed shareholders with a sizeable cut to its dividend, but due to the sharp fall in its share price, it is still one of the more generous on the market. In FY 2018 Telstra intends to pay a fully franked 22 cents per share dividend, which equates to a 5.9% yield.
WAM Capital Limited (ASX: WAM)
This listed investment company provides the biggest yield of the three. At the current share price WAM provides a trailing fully franked 6.3% dividend. The strong performance of its funds has allowed it to increase its payout for eight years in a row. I expect it to make it nine years in a row in FY 2018.
