Unfortunately for savers and income seekers, it is looking increasingly likely that the Reserve Bank of Australia will cut rates again at its meeting next week.
After which, many economists are tipping one of two more cuts to come within the next 12 months.
This means that this low interest rate environment isn't going anywhere for some time, potentially even years.
But don't worry because the three dividend shares listed below can help you generate a decent income in these difficult times:
Australia and New Zealand Banking Group (ASX: ANZ)
With the Royal Commission out of the way and the housing market tipped to rebound in 2020, I think now could be a good time to return to the big four banks if you haven't already done so. My preference in the group is ANZ due to its attractive valuation, above-average dividend yield, cost-cutting opportunities, and share buybacks. At present the bank's shares offer investors a trailing fully franked 5.7% dividend yield.
BHP Group Ltd (ASX: BHP)
Another quality option for income investors to consider is this mining giant. I estimate that its shares currently provide a forward fully franked 3.8% dividend. However, this does not include any special dividends which I feel are quite likely to be declared again in FY 2020 given favourable commodity prices and the company's penchant for returning the majority of its free cash flow to shareholders.
Super Retail Group Ltd (ASX: SUL)
A final dividend share to consider buying is Super Retail Group. It is the company behind a collection of retail brands including automotive retailer Supercheap Auto, sports store Rebel, and adventure retailer Macpac. It has been a positive performer in FY 2019 despite tough trading conditions and appears well-positioned to continue this form into FY 2020 thanks to improving consumer sentiment due to tax cuts and the potential rebound in the housing market. Super Retail's shares currently offer a trailing fully franked 5.9% dividend yield.
