Next week the Reserve Bank will be holding its second cash rate meeting of 2020.
Whilst current cash rate futures are pointing to only an 11% probability of a rate cut, there are suspicions the central bank could make a move to support the economy and share market.
Whether one happens next week or not, time will tell. But I remain convinced that rates will be going lower this year.
In light of this, if you haven't done so already, I would suggest you consider switching out of term deposits in favour of ASX dividend shares.
Two top dividend shares that I would buy next week are listed below:
Telstra Corporation Ltd (ASX: TLS)
One top dividend share to consider buying is this telco giant. I was impressed with Telstra's half year results in February which revealed that its T22 strategy is delivering strong results. Although its EBITDA continued to slide during the half, it would have grown by $90 million if you excluded the NBN rollout headwinds. So, with the end of the NBN rollout now in sight and further costs being stripped out, I don't think it will be long until Telstra returns to growth again. This could mean that its current 16 cents per share fully franked dividend starts to increase again from as early as FY 2022. For now, though, this provides a decent 4.65% dividend yield.
Transurban Group (ASX: TCL)
I think Transurban would be a good option for income investors. The toll road operator has been growing at a solid and predictable rate over the last decade and has continued this positive form in FY 2020. Due partly to the combination of toll price increases and growing average daily traffic, Transurban delivered an 8.6% increase in proportional toll revenue to $1,396 million in the first half. This allowed the company's board to reaffirm its plan to pay a FY 2020 distribution of 62 cents per share. This equates to a yield of approximately 4.2%.
