In this week's Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant once again held firm with its cash rate forecasts.
According to the release, the bank expects rates to remain on hold until at least December 2020.
If this forecast proves accurate then it could be as far away as 2022 before rates have increased to more "normal" levels.
In light of this, I continue to believe investors would be better off skipping savings accounts and term deposits in favour of the share market.
Three dividend shares that I think would be great options for investors are listed below:
Accent Group Ltd (ASX: AX1)
This footwear retailer's shares are currently changing hands at around 15x trailing earnings and provide a trailing fully franked 5.4% yield. I think this makes its shares good value, especially considering management recently reported a stronger than expected performance in the first half of FY 2019. As a result, it has provided interim EBITDA growth guidance of between 15% and 20%. I expect its dividend to increase in line with earnings.
BHP Group Ltd (ASX: BHP)
Another top option for income investors could be BHP. Whilst it is too late to get hold of its special dividend, its shares still provide an above-average fully franked 4.8% yield on a trailing basis. Pleasingly, I believe the mining giant is well-positioned to increase its dividend in FY 2019 thanks to the high levels of free cash flow it is generating from its world class operations and its strong balance sheet.
Coles Group Ltd (ASX: COL)
Finally, I believe this supermarket giant could be a great investment option in 2019. Although the company has yet to reveal its dividend plans for FY 2019, a broker note out of the Macquarie equities desk late last year revealed that its analysts expect Coles to pay a fully franked dividend of 65.7 cents per share. If the broker's forecast is accurate then it means Coles shares currently provide a forward 5.2% dividend yield.
