With an average dividend yield of 3.8%, the Australian share market is one of the most generous markets in the world.
I believe this is great news for income investors, especially considering the state of interest rates at the moment.
Three shares with above-average dividend yields that I would buy today are listed below:
Dicker Data Ltd (ASX: DDR)
In FY 2017 this wholesale distributor of computer hardware and software intends to pay its shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. This equates to a generous annual yield of 5.6% based on the current share price.
Super Retail Group Ltd (ASX: SUL)
Due to the work it has undertaken to prepare for Amazon's launch, I think the retailer behind brands such as Super Cheap Auto and Rebel Sport is a great option for investors right now. At the current share price the retailer's shares provide a trailing fully franked 5.6% dividend.
Telstra Corporation Ltd (ASX: TLS)
This telco giant may have disappointed shareholders with a sizeable cut to its dividend, but the sharp fall in its share price still makes it one of the more generous on the market. In FY 2018 Telstra intends to pay a fully franked 22 cents per share dividend, which equates to a 6% yield.
