Data released by the Australian Bureau of Statistics on Wednesday revealed that Australian wage growth decelerated unexpectedly during the December quarter.
I believe this is yet another sign that inflation will be nowhere near the required levels for the Reserve Bank of Australia to take the cash rate higher in the near future.
In light of this, I would suggest investors skip savings accounts and term deposits in favour of the many dividend shares on the Australian share market. Three of my favourites are listed below:
National Australia Bank Ltd (ASX: NAB)
One of my favourite bank shares at the moment is National Australia Bank. The banking giant's shares currently offer investors a trailing fully franked 8% dividend. While there is speculation that this dividend may need to be cut in order for the company to achieve the CET1 target ratio by 2020, I'm optimistic that its exposure to a strong performing business lending market will put it in a position to maintain it.
National Storage REIT (ASX: NSR)
National Storage is a real estate investment trust which provides self-storage solutions through a network of 127 storage centres across Australia and New Zealand. The company has been a strong performer over the last couple of years and this has been reflected in its unit price which has climbed a sizeable 27% over the last 12 months. In addition to this, the company's units have provided investors with a decent source of income. At present they offer a trailing 5% distribution yield. I believe this distribution could grow at a solid rate in the future thanks to its sizeable cash balance which can fuel its growth through acquisition strategy .
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another top option for income investors could be this airport operator. On Thursday it reported a record full year result which saw total revenue come in 6.8% higher at $1,584.7 million and EBITDA rise 7.2% to $1,282.6 million. In addition to this, management advised that it expects to pay a 39 cents per security distribution in FY 2019. Based on its current share price this equates to a 5.4% forward yield.
