With rates likely to go lower next month and perhaps even lower in the months that follow, it looks set to become even harder to generate sufficient income from interest-bearing assets such as term deposits.
The good news is that the Australian share market is here to save the day with a plethora of dividend shares that offer vastly superior yields.
Three top dividend shares that I think would be great options right now are listed below:
Coles Group Ltd (ASX: COL)
When this supermarket giant listed on the ASX it revealed that it would pay out between 80% and 90% of its earnings as dividends. I think this dividend policy makes Coles a great option for income investors, especially given its positive growth prospects due to expansion opportunities and its focus on automation. The latter is expected to lead to a material improvement in its margins and support its long term earnings growth. I estimate that Coles' shares currently provide a fully franked forward 4.4% dividend yield.
National Storage REIT Stapled Securities (ASX: NSR)
Another dividend share to consider buying is National Storage. It is one of Australasia's largest self-storage providers, tailoring self-storage solutions to more than 35,000 residential and commercial customers at 146 storage centres across Australia and New Zealand. I believe National Storage is well-positioned to grow its earnings and distribution at a solid rate over the next decade, thanks to increasing demand for its services and its growth through acquisitions strategy in a highly fragmented industry. At present its shares offer a forward yield of between 5.6% and 5.8%.
Super Retail Group Ltd (ASX: SUL)
Finally, I think it would be well worth considering an investment in this retail share. Super Retail is the company behind brands including Supercheap Auto, Rebel, and Macpac. Despite facing tough trading conditions due to weak consumer sentiment and spending, Super Retail has been a strong performer in FY19 and is on course to deliver another solid profit result in August. Pleasingly, with trading conditions expected to improve greatly in the near-term following the surprise election result, I believe it is well-placed to continue its strong form into FY20. At present its shares offer a trailing fully franked 5.5% dividend yield.
