Earlier today I looked at the latest Westpac Banking Corp (ASX: WBC) Weekly economic report and revealed that the bank expects two more cash rate cuts in 2020.
Unfortunately for income investors, this will take the cash rate down to a record low of 0.25%. This is likely to put significant pressure on the interest rates on offer with savings accounts and term deposits.
In light of this, I would suggest investors beat the rate cuts with these ASX dividend shares in 2020:
Coles Group Ltd (ASX: COL)
I think this supermarket operator is a dividend share to buy. This is due largely to its refreshed strategy and its focus on automation. Coles' new strategy is expected to cut its costs significantly over the coming years and improve margins. Combined with solid sales growth and its strong market position, this should lead to robust earnings and dividend growth. I estimate that its shares currently provide a fully franked forward 3.5% dividend.
Stockland Corporation Ltd (ASX: SGP)
Stockland is a property group which owns, manages and develops a wide range of assets such as retail centres and residential properties. It was a solid performer in FY 2019 and appears well-placed this year. It recently provided a Q1 trading update which revealed that it has continued its positive form in FY 2020. I estimate that its shares offer a generous forward 5.8% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
A final dividend share to consider is Telstra. Trading conditions have been very difficult over the last few years for this telco giant due to the arrival of the NBN. The good news is the NBN rollout is gathering pace and "peak NBN pain" is expected in FY 2021. In light of this and its material cost cutting, I believe a return to growth isn't far away. In the meantime, I am confident its 16 cents per share dividend is as low as it will go and no further cuts are necessary. This equates to a fully franked 4.4% dividend yield.
