As was widely expected, the Reserve Bank elected to cut the cash rate down to a record low of 0.75% on Tuesday.
Whilst this is great news for borrowers, it is another bitter blow to savers and income investors who will be forced to contend with low interest rates for some time to come.
Luckily, the Australian share market is here to save the day with a wide number of dividend shares offering generous yields.
Here are three top shares that will help you beat low rates:
Aventus Group (ASX: AVN)
One high yield option to consider is Aventus. It is a leading owner and operator of large format retail parks across Australia. Thanks to the continued popularity of this format with consumers, in FY 2019 Aventus grew its funds from operations (FFO) to $96 million or 18.4 cents per security. Management believes it is well-positioned for further growth this year, which I feel bodes well for its distribution. I estimate that its shares offer a forward 6.3% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Another option for income investors to consider buying is this telco giant. At present Telstra's shares offer a trailing fully franked 4.5% dividend yield, which I believe makes it an attractive option in this low interest rate environment. Especially given its improving outlook now that the end of the NBN rollout pain is in sight and rational competition is returning to the industry. Another positive is that I remain confident that its dividend has been cut down to a sustainable level and no further cuts will be necessary.
Transurban Group (ASX: TCL)
A final dividend share to consider is Transurban. This toll road giant is one of my favourite dividend shares on the local market due to the quality of its assets, their strong pricing power, and increasing traffic. Combined with recent acquisitions and developments, I believe Transurban is well-placed to grow its distribution for a long time to come. This year management plans to increase its distribution to 62 cents per security, which equates to a forward 4.1% forward yield.
