According to the latest economic report by Westpac Banking Corp (ASX: WBC), it continues to forecast the cash rate staying on hold at 0.25% until at least the start of 2022.
In light of this, it looks inevitable that the interest rates on savings accounts and term deposits will remain at ultra-low levels for some time to come.
The good news for income investors is that ASX dividend shares can help you overcome these low rates.
But which dividend shares should you buy? Three that I would buy next week are listed below:
Dicker Data Ltd (ASX: DDR)
The first dividend share I would buy is this wholesale distributor of computer hardware and software. Dicker Data has consistently grown its earnings and dividends at a solid rate over the last few years thanks to its strong market position, increasing vendor agreements, and favourable industry tailwinds. This positive form has continued in FY 2020 despite the pandemic, with the company reporting stellar first half earnings growth. As a result of this, the company advised that it plans to increase its dividend by 31% to 35.5 cents per share for FY 2020. Based on the current Dicker Data share price, this represents a fully franked 5.1% dividend yield.
Goodman Group (ASX: GMG)
While Goodman Group may not offer the biggest yield on the local share market, I think it is still worth considering. This is because I believe the owner, developer, and manager of industrial real estate is well-positioned to grow its earnings and distribution at a solid rate over the next decade thanks to its high quality asset portfolio. Goodman Group's assets have exposure to high growth markets such as ecommerce through relationships with giants such as Amazon, DHL, and Walmart. Based on the latest Goodman Group share price, I estimate that it offers investors a 2.1% FY 2021 distribution yield.
Wesfarmers Ltd (ASX: WES)
A final dividend share to consider buying is Wesfarmers. I'm a big fan of Wesfarmers due to its defensive qualities and its positive long term outlook. The latter is due to the quality businesses it has in its portfolio, such as Bunnings, and its history of earnings accretive acquisitions. And given its hefty cash balance, I suspect deals may not be far away. At present I estimate that Wesfarmers' shares offer investors a forward fully franked ~3.5% dividend yield.
