On Tuesday the Reserve Bank of Australia opted to keep rates on hold at the record low of 1.5% for yet another month.
Unfortunately for savers this is likely to be the same outcome at every meeting this year.
In fact, savers ought to be prepared for low rates to stick around for a long time to come. Some economists have predicted that rates will remain on hold until 2020.
With that in mind, here are three dividend shares that offer savers a great source of income:
Commonwealth Bank of Australia (ASX: CBA)
Due to recent share price weakness brought about by the Royal Commission, the shares of Australia's largest bank currently provide income investors with a trailing fully franked 5.9% dividend. This is 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.
Greencross Limited (ASX: GXL)
This integrated pet care company's shares have fallen notably lower this year despite the release of a solid half-year result in February. I think this is a buying opportunity for investors, especially with its in-store veterinary clinic roll out and loyalty program showing a lot of promise. Another bonus is the dividend its shares offer investors. At the last close price, they provided a trailing fully franked 3.7% yield.
WAM Capital Limited (ASX: WAM)
This listed investment company is one of my favourite dividend shares on the local share market. Thanks to some astute stock picking, WAM Capital's funds have been performing very well in recent years. This has allowed the company to increase its dividend for no less than eight consecutive years. This looks likely to extend to nine years in FY 2018 after management opted to raise its interim dividend by 3.3% to 7.75 cents per share. This means that WAM Capital's shares provide investors with a trailing fully franked 6.1% dividend at present.
