This afternoon the Reserve Bank of Australia will meet once again to discuss the cash rate.
Whilst nobody really knows what the central bank will do, the market thinks it does and has priced in a 100% probability of a cut to a new record low of 1.25%.
Whilst this is great news for borrowers, spare a thought for savers and income investors who will have to contend with low interest rates for longer than expected.
For those investors I have picked out three top dividend shares that could help smash low interest rates. Here's why I like them:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a leading distributor of information technology products across Australia and New Zealand. It has been a very impressive performer over the last couple of years thanks to the introduction of new vendor agreements and strong sales from existing vendors. This year, the company plans to pay a dividend of 22 cents per share in quarterly instalments. This equates to a fully franked 4.4% dividend yield.
Rural Funds Group (ASX: RFF)
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. At its last update, its portfolio boasted a weighted average pro forma lease expiry of 11.4 years. I believe this and periodic rental increases means the company is well-placed to increase its distribution at a solid rate over the next decade. At present, its units offer investors a 4.6% forward distribution yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying to beat low interest rates is this leading toll road operator. As with the others, I believe Transurban is well-positioned to continue growing its dividend at a solid rate over the next decade. This is due to the quality of its toll road portfolio at home and in North America, acquisitions, and periodic toll price increases. Its units currently provide investors with a trailing distribution yield of 4.2%.
