According to the latest Westpac Banking Corp (ASX: WBC) Weekly, the banking giant's economics team continues to forecast two more rates cuts this year.
In light of this, if you haven't done so already, I think now would be a good time to switch out of term deposits and into dividend shares.
But which dividend shares should you buy? I think these three ASX dividend shares are amongst the best on the market right now:
National Storage REIT (ASX: NSR)
National Storage is one of the largest self-storage providers in Australia and New Zealand. Demand for its tailored storage solutions has been strong in recent years. Combined with acquisitions and developments, this has led to solid income and distribution growth. The good news is that I feel confident this trend will continue for the foreseeable future and expect it to be supported by the improving housing market. This year management expects to deliver underlying earnings per security growth of greater than 4%. Based on this, I estimate that its units offer a generous distribution yield of 5%.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Sydney Airport welcomed 21.6 million passengers through its gates during the first half of FY 2019. Although this was a small decline on the prior corresponding period, it didn't stop it from delivering a 3.4% increase in revenue. The main drag on its passenger numbers was domestic tourism. Pleasingly, this has improved since the election and looks set to continue doing so in 2020. Combined with its growing ancillary revenues, I believe the airport is well-placed for growth. This year Sydney Airport intends to pay a 39 cents per share dividend, which equates to a 4.4% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
I believe things are starting to look up for this telco giant after a few tough years. This is due to the success of its T22 strategy, the return of rational competition in the telco sector, and the progress of the NBN rollout. In respect to the latter, peak pain from the NBN rollout is expected in FY 2021. After which, the pressures on its earnings should ease and a return to growth could come. For now, though, I remain confident its 16 cents per share fully franked dividend is fully sustainable from its current cash flows. This equates to a fully franked 4.15% dividend yield.
