MENU

3 cheap dividend shares to buy today

One positive take on yesterday’s market meltdown is that it has made a number of quality dividend shares cheaper.

Three which I think are attractive after yesterday’s decline are listed below. Here’s why I like them:

BHP Billiton Limited (ASX: BHP)

This mining giant’s shares fell almost 3% on Tuesday, meaning they now provide investors with a trailing fully franked 3.6% dividend. However, considering the strength of the global economy and demand for commodities, I believe BHP Billiton will be in a position to increase its dividend meaningfully in FY 2018. In light of this, I think the diversified miner could be one of the best options in the share market right now.

Greencross Limited (ASX: GXL)

This integrated pet care company tumbled over 5% lower yesterday during the market sell-off. This means Greencross’ shares are now changing hands at a little over 16x trailing earnings and provide a trailing 3.2% dividend. I think this makes Greencross very appealing given the early success it has had with its in-store clinic roll out. In-store clinics are currently found in 17% of its retail stores, but management is targeting over 60% in the future. I believe this could help the company grow its bottom line at a solid rate over the coming years.

Telstra Corporation Ltd (ASX: TLS)

Not even this telco giant could escape the market meltdown on Tuesday. Telstra’s shares finished the day down over 3% to $3.51. Based on its proposed 22 cents per share dividend in FY 2018, Telstra’s shares will provide a fully franked 6.3% yield over the next 12 months. This smashes anything on offer from term deposits and savings accounts. Furthermore, I remain confident that the company is in a position to maintain this dividend in FY 2019 as well. I think this makes it well worth considering today.

This fourth dividend share could be a great option as well after yesterday's market meltdown.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited and Telstra Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.