On Tuesday the Reserve Bank elected to keep the cash rate on hold at 0.75%.
But if cash rate futures are accurate, it won't be long until the central bank is forced to take rates lower. Current cash rate futures have priced in a cut to 0.5% by May.
So, if you haven't done so already, I think now would be a great time to switch out of term deposits and high interest savings accounts and into dividend shares.
Three top dividend shares that could be great options for income investors are listed below. Here's why I like them:
Lendlease Group (ASX: LLC)
I think this international property and infrastructure group could be a good option for income investors. Lendlease's outlook has improved greatly after a couple of disappointing years. This is evident in its development pipeline which is now approaching $100 billion in project value and the company offloading its struggling Engineering business. Overall, I believe Lendlease is well-placed for solid earnings and dividend growth over the next decade. So, whilst its shares only currently offer an estimated fully franked 3.7% forward dividend yield, I expect this to grow strongly in the future.
Transurban Group (ASX: TCL)
Transurban continues to be one of my favourite dividend shares on the Australian share market. I'm a big fan of the toll road operator due to its high quality portfolio of toll roads and the strong pricing power they have. And with congestion on arterial roads getting worse each year, I expect this to lead to a growing numbers of vehicles using its toll roads for years to come. This should support solid income and distribution growth over the next decade. At present Transurban's shares offer a forward 3.9% distribution yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another option for investors to consider buying is the Vanguard Australian Shares High Yield ETF. This ETF provides investors with low-cost exposure to ASX shares that have higher forecast dividends relative to other ASX-listed companies. And with no company representing more than 10% of the total ETF, it offers investors some much needed diversification. Among the diverse group are the likes of Australia and New Zealand Banking Group (ASX: ANZ) and BHP Group Ltd (ASX: BHP). Its units currently provide investors with an estimated forward dividend yield of 5.3%.
