The most recent Westpac Banking Corp (ASX: WBC) economic update reveals that the bank doesn't expect the Reserve Bank to raise the cash rate until 2021 at the earliest.
If this proves accurate then 2019 is likely to be another year of ultra low interest rates for Australian savers.
In light of this, I think that savers ought to consider putting their money to work in the share market instead. Especially after a sharp pullback in recent months has potentially set the local market up for a positive run next year.
Three dividend shares that I would buy in 2019 are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
It has been a year to forget for Australia's big four banks, but I'm optimistic that 2019 will be far better once the Royal Commission final report is released in February. If that report holds no nasty surprises then I suspect that buyers will return to the sector. I like ANZ Bank's shares right now because they are changing hands at just 9x earnings, 1.1x book value, and offer a trailing fully franked 6.85% dividend.
National Storage REIT (ASX: NSR)
Although its shares look fully valued now after a stellar run in recent months, I think this storage provider would still be a good option for income investors. I believe it is well positioned to continue growing at a solid rate for the coming years thanks to the solid demand it is experiencing and its growth through acquisition strategy. At present the company's units provide a trailing 5.2% distribution yield.
Super Retail Group Ltd (ASX: SUL)
This retail group's shares have fallen heavily in the final quarter due largely to the surprise resignation of its long-standing and popular CEO. While this news is disappointing, I feel the selloff that has ensued has been overdone. Especially with all its brands reporting solid like for likes sales growth so far in FY 2019. So with its shares changing hands at just 10x earnings and offering a very generous 7.2% dividend yield, I think it could be well worth considering in 2019.
