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3 income shares I’m considering

It’s easy to look at what has happened in the past and extrapolate that the same will keep occurring. That can be dangerous with growth shares.

However, dividend shares are much more predictable each year and the dividends are reliable.

I’m always looking to expand my income portfolio with reliable shares, here are three on my radar:

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the listed investment companies (LICs) run by Wilson Asset Management.

It’s one of the newer LICs and it’s quite different to the rest. Most of the others focus on smaller growth companies, whereas WAM Leaders concentrates on shares in the ASX200.

WAM Leaders has done well so far. Over the past year the portfolio has grown by 18.4% before fees and taxes.

It currently has a grossed-up dividend yield of 3.69%, but the aim is to grow the yield to a similar level of the other WAM LICs.

Clime Capital Limited (ASX: CAM)

Clime is a small LIC that has been making good changes to its investment strategy and capital structure over the last year, which should benefit shareholders.

The thing that I like about Clime is that it invests across the spectrum in ASX large caps, medium caps, small caps and overseas shares. I think this investment approach is the best way to go in this fast-changing world.

Clime has grown its dividend every year since 2012 and currently has a grossed-up dividend yield of 8.05%.

Arena REIT No 1 (ASX: ARF)

Arena is one of the largest real estate investment trusts (REIT) that mostly invests in childcare centres.

It has over 200 centres and leases a majority of them to large childcare operators like Goodstart Early Learning, Affinity Education, Oxanda Childcare and G8 Education Limited (ASX: GEM).

Arena has steadily been growing its distribution and currently has a trailing yield of 5.11%.

Foolish takeaway

I like all three shares as dividend ideas, but I’d buy Clime out the three at the current prices because I believe it will give investors the biggest total shareholder return over the next three years.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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