Although this week's surprisingly positive jobs data has reduced the likelihood of a rate cut by the Reserve Bank in February, I don't think it will be long until the cash rate is taken lower again.
If this happens it will put pressure on the banks to cut the interest rates on savings accounts and term deposits.
In light of this, I would suggest investors consider switching to dividend shares if they wish to generate income.
Three dividend shares I would buy are listed below:
BHP Group Ltd (ASX: BHP)
Earlier this week this mining giant released its first half update which revealed six months of solid production. Management also confirmed that it is on track to achieve both its full year production and costs guidance. And given how commodity prices remain favourable, I'm confident BHP will deliver another bumper profit result in FY 2020. Which is likely to mean another year of generous dividends for investors. I estimate that BHP's shares currently offer a fully franked forward 5.9% dividend yield.
Stockland Corporation Ltd (ASX: SGP)
Another dividend share to consider buying is Stockland. It is a diversified property company which has started FY 2020 in a positive fashion. This allowed it to pay a 13.5 cents per security distribution during the first half. Which means it is now on track to deliver on its guidance of a full year distribution of 27.6 cents per security. Based on this guidance, it currently offers investors a forward 5.5% distribution yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying right now is this leading toll road operator. Transurban owns a number of key roads across Australia and North America. With congestion on major arterial roads getting worse each year, the company's toll roads continue to experience growing traffic numbers. This, in conjunction with toll price increases, is leading to solid income and distribution growth. In FY 2020 the Transurban board aims to lift its distribution to 62 cents per security. This equates to a forward 3.9% distribution yield.
