Earlier this month Commonwealth Bank of Australia (ASX: CBA) and other banks lifted the rates on offer with their term deposits despite the cash rate cuts.
Commonwealth Bank made a 60 basis point increase to its 12-month term deposits to 1.70% per annum. Whilst I commend the banks for lifting these rates in this low interest rate environment, I would necessarily settle for these rates.
After all, the Australian share market is home to a large number of shares that offer vastly superior yields. Three that I would consider buying when the market settles are listed below:
DEXUS Property Group (ASX: DXS)
DEXUS is one of Australia's leading real estate groups, with a focus on office, industrial, and retail properties. I like DEXUS due to its defensive qualities in this volatile market. This is thanks largely to its long leases and the fixed rental increases they have built into them. In addition to this, the favourable conditions in the Sydney office market should offer further support to its earnings and distributions. I estimate that its shares currently offer a forward 5.5% distribution yield.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a leading distributor of information technology products throughout the ANZ region. Due to a combination of increasing demand and a growing number of vendor agreements, it has been growing its earnings and dividend at a strong rate over the last few years. Whilst the coronavirus outbreak could slow its growth over the coming months, it hasn't slowed down its insider buying. There has been some significant purchases by directors this month. After adjusting for its special dividend, I estimate that its shares offer a fully franked 4.6% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Finally, I think this telco giant would be a good option after the pullback in its share price this month. Especially after it recently confirmed that it remains on track to achieve its guidance in FY 2020. And although there is likely to be some impact on its performance because of the coronavirus outbreak, I believe its defensive qualities will limit this impact. I also believe its dividend is sustainable at the current level from its forecast free cash flows. Looking further ahead, I think its outlook is increasingly positive and Telstra could even return to growth from FY 2022. At present its shares offer a fully franked 5.1% yield.
