Earlier today I wrote about how Westpac Banking Corp (ASX: WBC) no longer expects a rate cut in February.
However, unfortunately for income investors, the banking giant believes they are still coming.
Instead of February and June, Westpac now expects the cuts to be made in April and August. This means by August the cash rate will be down to a lowly 0.25% if the bank's forecasts are on the money.
In light of this, I would suggest investors beat the rate cuts with these ASX dividend shares:
Macquarie Group Ltd (ASX: MQG)
I think Macquarie would be a good option for income investors. I think the global investment bank is one of the highest quality companies in the country and a great long term option. I'm a big fan of Macquarie due to its talented management teams and its diverse revenue streams. In respect to the latter, I believe this leaves it well-placed to deliver solid earnings and dividend growth even when the big four banks are struggling. At present Macquarie's shares offer a partially franked trailing dividend yield of approximately 4%.
National Australia Bank Ltd (ASX: NAB)
If you're looking for big four bank exposure then I think NAB could be the one to buy. I think recent share price weakness has left its shares trading at a very attractive level. Especially given its reasonably positive outlook due to the improving housing market and its exposure to the SME lending market. It also provides one of the most generous dividend yields on the market right now. Even after factoring in a potential dividend cut in FY 2020, its shares offer investors an estimated fully franked forward 6.3% dividend yield.
Transurban Group (ASX: TCL)
A third dividend share to consider buying is Transurban. The toll road operator is one of my favourite dividend shares on the Australian share market. This is due to its world class portfolio of toll roads and the strong pricing power they have. Furthermore, with congestion on arterial roads getting worse each year, I expect this to lead to a growing number of vehicles using its toll roads for years to come. Combined with acquisitions and developments, this should support solid income and distribution growth over the next decade. At present Transurban's shares offer a forward 3.9% distribution yield.
