Australia Markets closed

Beat the rate cuts with Transurban and these quality ASX dividend shares

James Mickleboro
Cut interest rates

The Reserve Bank of Australia looks likely to keep rates on hold on Tuesday. But a move lower is increasingly likely early in 2020 following recent economic data.

Whilst this will be good news for borrowers, it certainly isn’t for those using term deposits and savings accounts as a source of income.

But don’t worry because these dividend shares can help you beat the rate cuts:

BHP Group Ltd  (ASX: BHP)

I think this mining giant would be a good option for income investors. Thanks to a combination of favourable commodity prices and its world class low-cost operations, BHP has been generating significant free cash flows. The majority of which has been returned to shareholders through dividends. The good news is that I expect more of the same this year. As a result, I estimate that its shares currently offer a fully franked forward 6% dividend yield.

Coles Group Ltd  (ASX: COL)

Another good option for income investors could be this supermarket operator. I believe Coles is well-placed for solid profit and dividend growth over the coming years thanks to its refreshed strategy, defensive qualities, same store sales growth, and the return of rational competition in the industry. At present its shares offer investors an estimated forward fully franked 3.5% dividend yield.

Transurban Group (ASX: TCL)

A final dividend share to consider is Transurban. The leading toll road operator owns a collection of roads across Australia and North America. Given the importance of these roads, their strong pricing power, and growing traffic, I believe Transurban is well-placed to grow its distribution over the next decade. In FY 2020 the company intends to increase its distribution to 62 cents per security. This equates to a forward 4% distribution yield.

The post Beat the rate cuts with Transurban and these quality ASX dividend shares appeared first on Motley Fool Australia.

And here are three dividend shares that Edward Vesely has just slapped buy ratings on. They all have growing fully franked dividends and look well-placed for solid long term growth.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia has recommended AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019