3 high-yield dividend shares I would snap up today

With an average dividend yield of approximately 4%, income investors certainly have a lot to choose from on the Australian share market.

Which is great news considering the weak outlook for interest rates in Australia this year.

Three high yield dividend shares that I would buy today are listed below. Here’s why I like them:

BHP Billiton Limited (ASX: BHP)

Although this mining giant’s shares have now recovered after an initial post-earnings decline, I still think they are great value and a quality option for income investors. BHP may have delivered profit growth slightly below expectations, but its dividend increase was well ahead of the market’s forecasts. Which means that its shares now provide a trailing fully franked 3.9% dividend. And considering the positive outlook for the global economy, I wouldn’t be at all surprised to see this dividend increase further come its full-year results release in August.

Telstra Corporation Ltd (ASX: TLS)

While Telstra’s half-year results were less than spectacular, they left me feeling confident that the telco giant can maintain its 22 cents per share dividend for at least the next couple of years. After which, a lot will depend on the success of its investments, cost cutting program, and the impact that 5G internet has on its business. I am optimistic that 5G will revolutionise the internet in the country and even make the NBN close to redundant. In fact, I thought it was interesting that Telstra’s new modems now come with a SIM slot allowing for internet connectivity through its mobile network. Perhaps this is a sign of the future. At present Telstra’s shares provide a forward fully franked 6.3% dividend.

Westpac Banking Corp (ASX: WBC)

I think recent price weakness in bank shares has opened up an opportunity for income investors to pick up some at a decent level. Although all the banks could be buys right now, my pick of the group remains Westpac. This is due to my belief that its shares provide the perfect mix of both value and income right now. As of yesterday’s close price, the shares of Australia’s oldest bank offer investors a generous trailing fully franked 6% dividend.

Lastly, I think this fourth dividend share could also be a great option for income investors in 2018 and beyond.

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 owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended 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.