Why I would buy ANZ and these ASX dividend shares for income

Australia and New Zealand Banking Group (ASX:ANZ) shares and two others could be great options for income investors…

| 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

With an average dividend yield of approximately 4%, the Australian share market has proven to be a life-saver for income investors in this low interest environment.

If you're yet to take advantage of the quality dividend shares that are on offer on the local market, then now could be a great time to pick up the shares listed below.

Here's why I like them:

Australia and New Zealand Banking Group (ASX: ANZ)

Thanks to a pullback in this banking giant's shares over the last three weeks, I think now would be an opportune time to buy its shares. Especially with the Royal Commission out of the way and the housing market expected to rebound in 2020. Whilst all the banks are arguably in the buy zone, my preference remains ANZ due to its current valuation, above-average dividend yield, cost-cutting opportunities, and share buybacks. ANZ's shares currently offer investors a trailing fully franked 5.8% dividend yield.

National Storage REIT (ASX: NSR)

National Storage is one of the largest self-storage providers in the ANZ market with a network of 146 centres. Whilst this is a large network, the company continues to see opportunities to grow due to the highly fragmented nature of the self-storage market. I expect the combination of organic and acquisitive growth will result in solid distribution growth over the coming years. At present its shares offer a trailing 5.4% distribution yield.

Rural Funds Group (ASX: RFF)

Another top option for income investors to consider is this agriculture-focused property group. I believe it is one of the best dividend shares on the local market thanks to the quality of its assets and its long term leases. At the last count the company had a weighted average lease expiry of ~11 years. Combined with periodic rental increases, I believe Rural Funds is well-placed to grow its distribution at a solid rate over the next decade. This year Rural Funds intends to pay a distribution of 10.43 cents per share, which equates to a yield of 4.5%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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 ⏸️ Income

⏸️ Income

2 quality ASX dividend shares to buy today

Here's why Coles Group Ltd (ASX:COL) and this ASX dividend share could be quality options for income investors right now...

Read more »

piles of australian one hundred dollar notes
⏸️ Income

Got money to invest for dividends? Here are 2 ASX shares

Do you have some money to invest ASX shares for dividends? One idea could be shoe business Accent Group Ltd…

Read more »

man handing over wad of cash representing ASX retail capital return
⏸️ Income

2 top ASX dividend shares to buy for your income portfolio

BWP Trust (ASX:BWP) and this top ASX dividend share could be great options for your income portfolio. Here's why...

Read more »

a woman
⏸️ Income

2 ASX 200 shares to buy for income

The 2 S&P/ASX 200 Index (ASX:XJO) shares could be worth buying for income, including Premier Investments Limited (ASX:PMV).

Read more »

⏸️ Income

2 ASX dividend shares to buy with yields above 4%

These 2 ASX dividend shares have yields above 4% and could be worth buying for income including Brickworks Limited (ASX:BKW).

Read more »

ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend
⏸️ Income

2 blue chip ASX dividend shares in the buy zone

Westpac Banking Corp (ASX:WBC) and this blue chip ASX dividend share could be top options for income investors right now...

Read more »

A row a pink piggy banks ranging in size from small to big, indicating ASX share price and dividends growth CBA bank dividend increase
⏸️ Income

Brokers rate these 2 ASX dividend shares as buys

These 2 ASX dividend shares are rated as buys by brokers, including the REIT Growthpoint Properties Australia Ltd (ASX:GOZ).

Read more »

blockletters spelling dividends bank yield
⏸️ Income

2 high yield ASX dividend shares to buy next week

Here's why Telstra Corporation Ltd (ASX:TLS) and this high yield ASX dividend share could be top options for income investors...

Read more »