Beat the RBA rate cuts with these quality ASX dividend shares

Get GrooveFunnels For Life While It Is Still In Beta For Free.

Cut interest rates

According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the bank continues to believe that the Reserve Bank will take the cash rate down to 0.5% by March of next year.

And with Australian inflation currently at 1.6%, this means that the interest rates on offer from savings accounts and term deposits are likely to be notably lower than the inflation rate in the very near future.

In light of this, I would suggest savers and income investors consider switching to dividend shares which offer inflation-busting yields.

Three to consider are as follows:

Accent Group Ltd (ASX: AX1)

Last week this footwear-focused retailer’s shares surged higher after it delivered an 8.7% increase in total sales to $935.3 million and a 22.2% jump in statutory net profit after tax to a record of $53.9 million. This was driven by solid like for like sales growth and margin improvement from reduced discounting. Looking ahead, management expects more growth in FY 2020, which bodes well for its dividend. In FY 2019 the company increased its dividend by 22% to 8.25 cents per share, which equates to a fully franked 5.1% dividend yield.

Scentre Group (ASX: SCG)

Scentre is the owner of the Westfield properties in the ANZ region. Last week it released its half year results and reported a 3% increase in funds from operations (FFO) and a 5% increase in earnings. This was driven partly by strong demand for its proprieties which led to a sky-high occupancy rate of 99.3%. More of the same is expected in the second half, with management forecasting FFO per security growth of approximately 3%. It also provided guidance for a final distribution of 11.3 cents per security, which equates to a 5.7% yield on an annualised basis.

Transurban Group (ASX: TCL)

One of my favourite dividend shares is this toll road operator. Once again Transurban was a strong performer in FY 2019, reporting a 12.3% increase in proportional EBITDA excluding significant items to $2,016 million. The good news is that management remains positive on its outlook and further solid growth looks likely in FY 2020. As a result, the company plans to increase its distribution by 5.1% to 62 cents per security. This equates to a forward 4.15% distribution yield.

NEW! 3 more inflation-busting dividend shares for 2020

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn… except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in “The Motley Fool’s Top 3 Dividend Shares for 2019.”

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

More reading

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia has recommended Accent Group and Scentre Group. 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.

Get GrooveFunnels For Life While It Is Still In Beta For Free.