On Wednesday, JP Morgan suggested that the Reserve Bank of Australia might not just cut the cash rate to 1.25% next month, but could take it all the way down to 0.5% within the next 12 months.
Whilst I'm not as dovish on the cash rate as JP Morgan, I expect it to be cut to at least 1% by the end of the year. This is likely to put pressure on the interest rates on term deposits and savings accounts.
In light of this, I think now would be a good time for income investors to consider snapping up one of these top dividend shares:
Accent Group Ltd (ASX: AX1)
I think that Accent Group could be a great option for income investors. Accent Group is the footwear-focused retail group behind retail brands including HYPE DC and Platypus. Although conditions in the retail sector have been tough, Accent has been a strong performer in FY19. It delivered a 27.3% increase in first half net profit after tax to $32.2 million, thanks to a combination of strong digital sales growth and margin improvement. Pleasingly, management expects further solid growth in the second half, which I believe will put the Accent board in a position to increase its dividend again. At present its shares offer a trailing fully franked 5.1% dividend yield.
Rural Funds Group (ASX: RFF)
Another quality dividend share for income investors to consider buying is this agriculture-focused real estate property trust. Rural Funds owns a portfolio of diversified agricultural assets, including almond and macadamia orchards, commercial-scale poultry farms, premium vineyards, water entitlements and cattle and cotton assets—all of which are leased to quality tenants. Due to the quality of its portfolio, long-term leases and periodic rental increases, I believe it is well-placed to grow its distribution at a solid rate over the next decade. At present, its units offer investors a 4.8% forward distribution yield.
Telstra Corporation Ltd (ASX: TLS)
I've been very impressed with the way Telstra has turned around its fortunes over the last 18 months and believe it is well positioned to return to growth in FY20. This is due to the return of rational competition, its cost-cutting plans and its leadership in 5G. I do, however, expect the Telstra board to cut its final dividend down to 8 cents per share, meaning a full-year fully franked 16 cents per share dividend. I think this is sustainable and could even grow from FY21 onwards. At present, a 16 cents per share dividend equates to a 4.5% dividend yield.
