Whilst a rate cut at the Reserve Bank's meeting in February appears unlikely after the strong employment data this month, I'm not convinced the central bank will be able to hold rates at this level for much longer.
In light of this, I think now would be a good time to consider looking beyond term deposits, bonds, or savings accounts if you haven't done so already.
Three top ASX dividend shares that I think would be great options for income investors are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
Whilst I think that all the big four banks could be great options for income investors, one of my favourites is ANZ. I think a recent pullback in its share price has left it trading at an attractive level. Especially given the improving housing market which could soon lead to increasing demand for mortgage loans. At present, ANZ's shares provide investors with a partially franked 6.2% dividend yield.
Scentre Group (ASX: SCG)
Scentre Group is the owner of all the Westfield properties in the ANZ region. Thanks to the quality of these assets and their increasing popularity with consumers, I remain confident that it is well-placed to grow its distribution at a steady rate over the next few years even. This is even after accounting for recent retail store closures. At present its units offer investors an attractive trailing 5.7% distribution yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
A final option to consider is the Vanguard Australian Shares High Yield ETF. I think this ETF is a great option for investors that don't have the capacity to invest across a wide number of shares. This is because it provides investors with exposure to many of the highest paying dividend shares on the ASX through a single investment. This includes the likes of the big four banks, mining giant BHP Group Ltd (ASX: BHP), and telco company Telstra Corporation Ltd (ASX: TLS). It currently offers a dividend yield of ~5.2%.
