Why I would buy ANZ Bank and 2 other quality dividend shares in 2019

Westpac Banking Corp (ASX:WBC) tips rates to stay on hold until 2021, so buy these top dividend shares in 2019…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The most recent Westpac Banking Corp (ASX: WBC) economic update reveals that the bank doesn't expect the Reserve Bank to raise the cash rate until 2021 at the earliest.

If this proves accurate then 2019 is likely to be another year of ultra low interest rates for Australian savers.

In light of this, I think that savers ought to consider putting their money to work in the share market instead. Especially after a sharp pullback in recent months has potentially set the local market up for a positive run next year.

Three dividend shares that I would buy in 2019 are listed below:

Australia and New Zealand Banking Group (ASX: ANZ)

It has been a year to forget for Australia's big four banks, but I'm optimistic that 2019 will be far better once the Royal Commission final report is released in February. If that report holds no nasty surprises then I suspect that buyers will return to the sector. I like ANZ Bank's shares right now because they are changing hands at just 9x earnings, 1.1x book value, and offer a trailing fully franked 6.85% dividend.

National Storage REIT (ASX: NSR)

Although its shares look fully valued now after a stellar run in recent months, I think this storage provider would still be a good option for income investors. I believe it is well positioned to continue growing at a solid rate for the coming years thanks to the solid demand it is experiencing and its growth through acquisition strategy. At present the company's units provide a trailing 5.2% distribution yield.

Super Retail Group Ltd (ASX: SUL)

This retail group's shares have fallen heavily in the final quarter due largely to the surprise resignation of its long-standing and popular CEO. While this news is disappointing, I feel the selloff that has ensued has been overdone. Especially with all its brands reporting solid like for likes sales growth so far in FY 2019. So with its shares changing hands at just 10x earnings and offering a very generous 7.2% dividend yield, I think it could be well worth considering in 2019.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Super Retail Group 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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »