Although the Reserve Bank of Australia has only just cut rates down to a record low, the market is already tipping a further rate cut in the near future.
According to the ASX 30 Day Interbank Cash Rate Futures for November, there is currently a 48% probability of a cut to 0.5% next month.
Whilst I'm not overly convinced that the central bank will cut as soon as that, I feel it is inevitable that another rate cut is coming.
In light of this, now might be a good time to consider replacing your term deposit with one of these top dividend shares:
Coles Group Ltd (ASX: COL)
Whilst its shares don't provide the biggest yield on the local share market, I think this supermarket giant could be a good option because of its solid growth prospects and dividend policy which aims to pay out between 80% and 90% of its earnings to shareholders. In respect to its growth prospects, Coles look well-placed thanks to its cost reductions program, expansion opportunities, and the return of rational competition. I estimate that its shares currently provide a fully franked forward 3.5% dividend.
Scentre Group (ASX: SCG)
Scentre Group could be a good option to replace your term deposit. I believe the owner of Westfield properties in the ANZ region is well-positioned for growth thanks to the robust demand for its tenancies and the increasing number of consumers that visit its centres. At its last update management revealed that there were 535 million visitors passing through its doors each year and each visitor was spending longer in its centres. At present its units offer a trailing 5.7% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another good option for income investor could be the operator of Sydney Airport. As the main gateway into Australia, it looks set to benefit from increasing international tourism and a potential recovery in domestic tourism in 2020. At present Sydney Airport's shares offer a generous trailing 4.8% dividend yield.
