With the cash rate at a record low and tipped to go even lower later this year, I think savers would be better off putting their money to work in the share market than leaving it to gather dust in a savings account.
Especially given the large number of quality dividend shares that offer yields which are vastly superior to anything you'll receive from savings accounts or term deposits.
Three dividend shares I would buy this week are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
I would sooner buy this banking giant's shares than put my money in one of its high interest savings accounts. After all, the ANZ Online Saver account currently offers a 0.5% per annum standard variable rate, which is actually lower than inflation. Whilst I think all of the big four would be good options for income investors, my preference remains ANZ due to its strong capital position, valuation, and growth prospects. Its shares currently offer investors a trailing fully franked 6.1% dividend yield.
Super Retail Group Ltd (ASX: SUL)
I've been impressed with the way this retail group has performed in FY 2019 despite the tough trading conditions it has faced. The company behind popular brands including Rebel, Macpac, and Super Cheap Auto grew its profits by 8.9% in the first half due to solid like for like sales growth. Pleasingly, the company has had a strong start to the second half, positioning it well to deliver a solid full year result. Despite this, Super Retail's shares are changing hands at under 11x estimated full year earnings and offer investors a trailing fully franked 6.4% dividend.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Sydney Airport is the main gateway to Australia and a company I believe is likely to be a big winner from the inbound and outbound tourism boom. Because of this, I think the airport operator is well-positioned to deliver solid profit and dividend growth over the next decade. This could make it a great buy and hold investment option, especially for income investors. Its shares offer a trailing 5.2% dividend.
