Earlier today I revealed that the Westpac Banking Corp (ASX: WBC) economic team expects the cash rate to remain on hold until at least the end of 2023.
While this is good news for borrowers, it is another blow for income investors. They are likely to have to contend with low interest rates for a number of years to come.
Don't worry, though, because ASX dividend shares can help you beat low interest rates.
But which ones should you buy? Here are three ASX dividend shares I would buy:
Dicker Data Ltd (ASX: DDR)
The first quality option for income investors to consider is this leading distributor of information technology products. Dicker Data has been growing its earnings and dividends at a solid rate over the last few years. This has been driven by a combination of increasing demand and a growing number of vendor agreements. I believe it is well-placed to continue this trend over the coming years, making it a top long term option. Dicker Data's shares currently offer an estimated forward 5.4% dividend yield.
Rio Tinto Limited (ASX: RIO)
I think Rio Tinto is a great option in the resources sector. The mining behemoth recently released its first quarter update which revealed that it is on track to achieve its Pilbara iron ore shipments guidance in FY 2020. This is a big positive as management also advised that demand for high quality iron ore remains strong despite the coronavirus pandemic. I believe this bodes well for its profits and dividends this year and next. As a result, I estimate that its shares offer a forward fully franked 4.5% dividend yield.
Rural Funds Group (ASX: RFF)
Another dividend share to consider buying is agriculture-focused property group Rural Funds. I think it is attractive option due to its diverse portfolio of assets and their long term tenancy agreements. In respect to the latter, Rural Funds reported a weighted average lease expiry of 11.5 years with its half year results. The beauty of this is that it gives the company good visibility on its future earnings. As such, it has been able to provide guidance for its distributions in both FY 2020 and next year. Rural Funds expects to pay a distribution of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.6% and 5.8%, respectively.
