Overnight the U.S. Federal Reserve met for the first time under new Chairman Jerome Powell and unanimously voted to raise interest rates by 25 basis points.
This took the Fed Funds rate to a range of 1.50% to 1.75%, meaning U.S. rates are now higher than their Australian equivalent.
Unfortunately, it doesn't seem likely that the Reserve Bank of Australia will be following in the footsteps of its U.S. counterpart any time soon.
Which is great news for borrowers, but not so much for savers who will have to contend with the paltry interest rates on offer from savings accounts and term deposits for some time to come.
The good news for savers, though, is that the Australian share market has plenty of high-yielding dividend shares to satisfy their income needs.
Three that I would recommend taking a closer look at today are listed below. Here's why I like them:
Commonwealth Bank of Australia (ASX: CBA)
The shares of Australia's largest bank currently provide income investors with a trailing fully franked 5.7% dividend, well ahead of the market average yield of approximately 4%. While the Royal Commission could hold its shares back for the next month or two, I think patient investors could be rewarded handsomely in the long-term from an investment.
Telstra Corporation Ltd (ASX: TLS)
This telco company's share price has come under pressure over the last 12 months amid concerns over its future profitability and its decision to cut its dividend. While the cut was a disappointment for existing shareholders, for non-shareholders I think the sell-off has created a buying opportunity. Telstra intends to pay a 22 cents per share dividend in 2018, equating to a fully franked 6.6% yield today.
WAM Capital Limited (ASX: WAM)
WAM is a listed investment company which has a great track record with both the performance of its funds and with dividend increases. In FY 2018 the company's strong performance means it is on course to make it nine years in a row of dividend increases after lifting its interim dividend to 7.75 cents per share last month. This means its shares provide a trailing fully franked 6.1% dividend at present.
