There is a good argument for every investor to own some dividend shares, especially in the current environment of very low interest rates.
Not only do they provide significantly higher yields compared to other asset classes, many dividend shares also offer a tax benefit to shareholders through franking credits.
With those points in mind, I have highlighted four dependable dividend shares that investors won't have to constantly worry about:
Macquarie Group Ltd (ASX: MQG)
Macquarie has become one of the world's leading asset managers and has done a tremendous job in transforming its business after the GFC. The company now earns a significant amount of its revenue from recurring management fees and this has made its earnings base far less volatile. The shares have performed very strongly over the past 12 months, but still offer a decent yield of 4.7%.
Transurban Group (ASX: TCL)
Transurban is one of the most consistent dividend shares on the ASX thanks to its highly defensive business model. Not only does the toll-road operator get a regular boost to cashflow thanks to annual toll price increases, the company is also benefiting from consistent increases in commuter numbers each year. The shares are currently offering a yield of 4.4%, although I would prefer to see this above 5% before considering the shares a strong buy.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is a $50 billion retail conglomerate and owns some of Australia's most defensive businesses including Coles and Bunnings. Unfortunately, the sheer size of the company means investors should not expect to see explosive earnings growth anytime soon. Nonetheless, Wesfarmers is a dependable dividend payer and investors can expect to receive a grossed-up yield of around 7% over the next 12 months.
SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)
The growing popularity of dividend shares over the past few years has seen the rise of a number of exchange traded funds (ETFs), including this one by State Street Advisors, developed specifically for investors wanting exposure to high yielding shares. One of the best features of ETF's is that they provide instant diversification for investors who might lack the resources or time to invest in individual shares. Interestingly, this ETF has generated an average annual return of 10.9% over the past five years and is currently offering a dividend yield of around 5.2%.
