This morning Westpac Banking Corp (ASX: WBC) released its latest Westpac Weekly economic report and once again reiterated its belief that the Reserve Bank will keep the cash rate on hold at 1.5% until at least December 2020.
If this forecast proves accurate it will likely mean that the interest rates on offer from savings accounts and term deposits will remain at low levels for a long time to come.
The good news is that the local market has come to the rescue of income investors with a large number of dividend shares offering generous yields.
Two that I think are worth considering this week are as follows:
BHP Billiton Limited (ASX: BHP)
While there are concerns that a global trade war could reduce demand for commodities and put pressure on prices, I'm optimistic that a crisis will be averted and allow BHP to deliver another solid profit again in FY 2019. In addition to this, in the coming weeks its shale asset divestment is due to complete and the company is expected to announce its plans for the funds. Many are expecting BHP to announce a special dividend and major share buyback program. The mining giant's shares currently offer income investors a trailing fully franked 5.1% yield.
Super Retail Group Ltd (ASX: SUL)
Although Super Retail provided a positive trading update last week at its annual general meeting, market volatility and the surprise retirement of its chief executive officer weighed heavily on its shares. This led to the retail group's shares finishing the week with a decline of just over 20%. While the loss of its long-serving chief executive officer is a bit of a worry, I think the selloff was severely overdone and has created a buying opportunity. Super Retail's shares are now priced at 10x earnings and offer a trailing fully franked 6.6% dividend.
