Last week the Reserve Bank of Australia opted to keep rates on hold at the record low of 1.5% for yet another month.
Based on recent economic data, this looks set to remain the case for some time to come.
In light of this, I continue to believe that investors would be better off skipping savings accounts and term deposits in favour of the share market.
Three income shares that I would consider are listed below:
Adairs Ltd (ASX: ADH)
After a sharp pullback in its share price over the last couple of months, this home furnishings retailer's shares are now trading at just 9x earnings and offer a trailing fully franked 7.8% dividend. I think this makes it a great option for income investors, especially given how it is well-positioned to continue growing its dividend in FY 2019. Management recently confirmed that it is on course to achieve earnings before interest and tax growth of between 4.9% and 13.7% in FY 2019 despite the cooling housing market.
National Storage REIT (ASX: NSR)
National Storage is one of the largest storage providers in ANZ with a growing network of facilities. Due to its high occupancy levels, increasing demand, and hefty cash balance to fund its growth through acquisition strategy, I believe the trust is positioned perfectly to continue increasing its distribution over the next few years. At present the company's units provide an above-average trailing 5.45% distribution yield.
Super Retail Group Ltd (ASX: SUL)
Like Adairs, I think this retail group's shares are a great option for investors after a recent pullback. Super Retail's shares are currently changing hands at just 10x earnings and offer a very generous 7% dividend yield. I think this is great value given that all of the company's brands have generated solid like for like sales growth so far in FY 2019.
