A series of cash rate cuts has left interest rates at record lows.
For example, the current interest rate on a Commonwealth Bank of Australia (ASX: CBA) five-year term deposit is just 1.25%.
This makes it near impossible for income investors to generate a sufficient level of income with term deposits.
Fortunately, the share market is here to the rescue with a plethora of dividend shares offering far more generous yields. Here are three which could help you smash low interest rates:
National Storage REIT (ASX: NSR)
National Storage is a self-storage-focused real estate investment trust which owns a network of 168 centres throughout the ANZ region. Although this makes it one of the largest operators in the region, management still sees plenty of room for growth through developments and acquisitions. I expect this to lead to support solid income and distribution growth for many more years to come. At present its shares provide a 5.2% trailing distribution yield.
Telstra Corporation Ltd (ASX: TLS)
It certainly has been an eventful few years for this telco giant. The NBN rollout has hit its bottom line hard, leading to a significant decline in earnings and ultimately its dividend. The good news is that the end of the NBN rollout is now in sight. In addition to this, the arrival of 5G looks like it could be a cash cow for Telstra in the coming years. Especially if consumers opt to bypass the NBN in favour of 5G in their homes. Overall, I believe Telstra’s outlook is greatly improved and its dividend looks sustainable. Its shares currently offer a trailing fully franked 4.5% dividend yield.
VanEck Vectors Australian Banks ETF (ASX: MVB)
If you’re looking at investing in the big four banks but can’t decide which one to choose above the rest, then you’re in luck. The VanEck Vectors Australian Banks ETF gives investors exposure to all the big four banks, the regionals, and also Macquarie Group Ltd (ASX: MQG). Its units currently offer investors a trailing 5.3% partially franked yield.
The post Smash low interest rates with these ASX dividend shares appeared first on Motley Fool Australia.
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.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended National Storage REIT. 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