The interest rates offered by bank accounts and term deposits is truly terrible.
The fact that $1 million can't even earn $30,000 annual interest today is a sign of how much governments and institutions aren't thinking about savers.
The only option might be for those investors to look to higher-yielding dividend shares.
Here are two dividend stocks at the top of my watchlist:
WAM Capital Limited (ASX: WAM)
WAM Capital is one of the largest listed investment companies on the ASX.
Its approach is to try to generate a market-beating performance and then pay most of that return as a dividend to shareholders.
The WAM Capital's investment team's ability to find undervalued growth companies consistently just shows their technique works.
Over the past five years the portfolio has returned an average of 17.6% per annum (before fees and expenses), soundly beating the S&P/ASX All Ordinaries Accumulation Index's average return of 10.7%.
WAM Capital is trading with a trailing grossed-up dividend yield of 8.93%.
Rural Funds is the only REIT on the ASX that purely invests in agricultural property.
It has a diverse range of farms including poultry, cattle, vineyards, almonds, macadamias and cotton.
I like the idea of Rural Funds because farmland has been a useful asset for hundreds of years and should continue to be for many years to come.
Rural Funds has rent indexation increases built into all of its contracts in some form, which is why Rural Funds can grow the distribution each year and accurately forecast an increase each year. Management are increasing the distribution in FY18 by 4%.
It's currently trading with a distribution yield of 4.28%.
Foolish takeaway
Good income shares are hard to find at a good price, with both of the above trading at almost all-time highs.
I want to add more Rural Funds and WAM Capital shares to my portfolio, but I'd wait for a cheaper price or premium to the underlying asset before buying,
