The cash rate is at a record low of 0.75% and has been tipped to go even lower next year.
This is making it harder and harder for income investors to generate a sufficient income from traditional interest-bearing assets such as term deposits.
The good news is that ASX dividend shares can still help you generate income in this low interest rate environment. Listed below are three that I would consider buying today:
Macquarie Group Ltd (ASX: MQG)
If you're not a fan of the big four banks but would like some exposure to the banking sector, then I feel it would be worth considering an investment in Macquarie. I like Macquarie due to the diversity of its operations and its overseas exposure. In fact, around two-thirds of its profits come from outside Australia. Overall, I believe it is one of the highest quality companies in the country and a great long term option. Its shares currently offer a partially franked dividend yield of 4.3%.
Scentre Group (ASX: SCG)
Another top option for income investors to consider buying is Scentre Group. It is the owner of the Westfield properties in the ANZ region. Scentre has been a solid performer in recent years thanks to the strong demand for its leases and increasing traffic through its centres. In respect to the latter, at the last count over 535 million visitors were passing through its doors each year. In light of this, I feel it is well-placed to grow its distribution at a steady rate over the next few years. At present its units offer a trailing 5.7% distribution yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying is Transurban. It is one of the world's leading toll road operators with a portfolio of roads in both Australia and North America. I think it could be a great option for income investors due to the quality of its assets, their strong pricing power, and its tendency to return the majority of its free cash flow to shareholders. In FY 2020 the company will lift its distribution to 62 cents per security. This works out to be a forward 4.2% distribution yield.
