Yesterday I revealed that the Westpac Banking Corp (ASX: WBC) economics team don't expect the Reserve Bank of Australia to lift the cash rate until 2021 at the earliest.
While this would be great news for borrowers, it will no doubt be a big disappointment for savers or income investors.
The good news is that there are plenty of options on the Australian share market that offer dividend yields that are significantly wider than those on offer with savings accounts or term deposits.
Three to consider this week are listed below:
BHP Group Ltd (ASX: BHP)
Unfortunately, it is now too late to qualify for this mining giant's US$1.02 per share special dividend. But I wouldn't let that put you off an investment as BHP's shares are still likely to yield a very generous dividend over the next 12 months thanks to the high levels of free cash flow that its world class operations are generating. Excluding its special dividend, BHP's shares currently offer a trailing fully franked 4.9% yield.
National Australia Bank Ltd (ASX: NAB)
If National Australia Bank can maintain its $1.98 per share in FY 2019, its shares will provide investors with a massive fully franked 8% dividend yield. While I have been sceptical in the past about its ability to maintain this dividend, I think the strength of business lending and its exposure to this market have put it in a position to do so. This could make it well worth considering an investment in the near term.
Rural Funds Group (ASX: RFF)
This agriculture focused real estate property trust's units currently provide a trailing 4.6% distribution yield. I think this could grow at a solid and predictable rate over the next decade thanks to its growing portfolio of income generating agriculture properties across different geographies and industries. This should be underpinned by its long-term tenancy agreements which have rental indexation built into them.
