Next week the Reserve Bank of Australia will meet to discuss the cash rate once again.
Whilst the probability of a cut at this meeting currently stand at just 4% according to ASX 30 Day Interbank Cash Rate Futures, I believe later this year there is a strong chance that the central bank could cut rates twice.
This may be good news for borrowers, but not so for savers who will have to contend with ultra-low interest rates for many more years.
Luckily for the latter group, the Australian share market is here to save the day with a large number of dividend shares offering generous yields.
Three that I would consider buying right now are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
Whilst I would argue that all big four bank shares are trading at attractive levels right now, my favourite continues to be ANZ. It is my top bank pick due to its very strong capital position, current valuation, and revenue growth prospects. Its shares currently offer investors a trailing fully franked 6.1% dividend yield.
Aventus Retail Property Fund (ASX: AVN)
Aventus is Australia's largest fully-integrated owner, manager, and developer of large format retail centres with a portfolio of 20 centres. Thanks to high occupancy levels and an increase in like for like net property income, in February Aventus posted a 6.3% increase in half year funds from operations to $47 million. This strong form has allowed the company to increase its distribution this year, meaning its units currently offer a trailing 7.2% distribution yield. Its shares are trading ex-dividend this morning, but as it pays dividends quarterly, you won't have long to wait for the next one.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
One of my favourite dividend shares on the Australian share market would have to be this airport operator. Due to the inbound and outbound tourism boom and its status as the main gateway into Australia, I believe Sydney Airport is well-positioned to continue growing both its earnings and dividend at a solid rate over the next decade. The airport opeerator's shares offer a trailing 5.1% dividend at present.
