Later today the Reserve Bank of Australia is meeting for the fourth time this year.
Whilst there's now only an outside chance of a cut at this meeting, I believe recent economic data means one is inevitable in the coming months.
In light of this, the paltry interest rates on offer from savings accounts and term deposits are likely to be here for a long time to come.
But don't worry because these dividend shares could help you beat low interest rates:
Australia and New Zealand Banking Group (ASX: ANZ)
My favourite bank share at the moment is ANZ. Although I wasn't blown away by its half year result last week, I saw enough in it to remain positive on its medium term outlook. I believe its strong capital position and cost cutting opportunities have positioned the bank to both maintain its current dividend and complement it with further capital management initiatives such as share buybacks or special dividends in the coming years. At present ANZ's shares offer investors a trailing fully franked 5.8% dividend yield.
Coles Group Ltd (ASX: COL)
I believe this supermarket giant would be a great option for investors looking to beat low interest rates, especially after its solid third quarter update. Late last month Coles released its third quarter sales update and revealed total supermarket and liquor sales growth of 3.3% to $8,007 million. This was driven partly by successful promotions and strong growth in average basket size due to items per basket growth and price inflation in fresh categories. In addition to this, the company reported a 27% increase in Coles Online sales. Overall, I believe this has left the company well-placed to deliver a strong full year profit result and reward shareholders with a generous final dividend. I estimate that its shares currently offer investors a fully franked forward 4.5% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another top dividend share to consider buying this week is Sydney Airport. As the operator of the country's busiest airport, I believe it is well-positioned to benefit from the growing number of tourists flocking to and from Australia. I expect this to lead to increasing demand for parking, rents from restaurants and retailers, and passenger fees. This should allow Sydney Airport to continue growing its dividend at a solid and predictable rate for many years to come, making it a great alternative to bonds in this low interest rate environment. The airport operator's shares currently offer a trailing 4.9% dividend yield.
