Last week the Reserve Bank of Australia opted to keep rates on hold at the record low of 1.5% for yet another month.
Based on recent economic data, this looks set to remain the case for some time to come.
In light of this, I continue to believe that investors would be better off skipping savings accounts and term deposits in favour of the share market.
Three income shares that I would consider are listed below:
Adairs Ltd (ASX: ADH)
After a sharp pullback in its share price over the last couple of months, this home furnishings retailer’s shares are now trading at just 9x earnings and offer a trailing fully franked 7.8% dividend. I think this makes it a great option for income investors, especially given how it is well-positioned to continue growing its dividend in FY 2019. Management recently confirmed that it is on course to achieve earnings before interest and tax growth of between 4.9% and 13.7% in FY 2019 despite the cooling housing market.
National Storage REIT (ASX: NSR)
National Storage is one of the largest storage providers in ANZ with a growing network of facilities. Due to its high occupancy levels, increasing demand, and hefty cash balance to fund its growth through acquisition strategy, I believe the trust is positioned perfectly to continue increasing its distribution over the next few years. At present the company’s units provide an above-average trailing 5.45% distribution yield.
Super Retail Group Ltd (ASX: SUL)
Like Adairs, I think this retail group’s shares are a great option for investors after a recent pullback. Super Retail’s shares are currently changing hands at just 10x earnings and offer a very generous 7% dividend yield. I think this is great value given that all of the company’s brands have generated solid like for like sales growth so far in FY 2019.
5 Companies we like better than Super Retail
When ace stock picker Scott Phillips has a buy recommendation, history suggests it can pay to listen.
Scott recently revealed what he believes are the five best ASX stocks for investors to buy right now… and Super Retail wasn’t one of them! That’s right — he thinks these 5 stocks are even better buys.
Here’s how you can strike it rich in the share market
The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.
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Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.
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