If you're looking for a way to beat the cash rate cuts, then the share market could be a great place to start.
Due to the market volatility, there are a large number of quality shares offering investors generous yields.
Three which I rate highly are listed below. Here's why I would buy them when the volatility eases:
BHP Group Ltd (ASX: BHP)
If you're looking for a little exposure to the resources sector, then I think BHP would be a great option. I believe the sharp pullback in its share price this month has created a buying opportunity for investors. Especially given how iron ore prices have remained at very high levels despite the global market meltdown. I believe these high prices will offset weakness in its Petroleum division and lead to further strong free cash flow generation in 2020 and 2021. At present I estimate its shares offer a fully franked forward 7% dividend yield.
BWP Trust (ASX: BWP)
BWP is a real estate investment trust and the landlord of hardware giant Bunnings. As Bunnings is arguably one of the highest quality retailers in the country, I think the probability of store closures and rental defaults is very low. Furthermore, periodic rental increases should be easily absorbed, putting the company in a solid position to continue growing its income and distribution at a predictable rate for the foreseeable future. At present its shares offer an estimated forward 6.3% distribution yield.
DEXUS Property Group (ASX: DXS)
DEXUS is an Australian real estate group with a focus on office, industrial, and retail properties. I think it is a top option for income investors due to its long leases and the fixed rental increases they have built into them. Another positive is the favourable conditions in the Sydney office market. Combined, I expect its earnings and distributions to grow at a solid rate over the coming years once the coronavirus crisis clears. I estimate that its shares currently offer a forward 5.5% distribution yield.
