These high-yielding dividend shares are on my shopping list

Telstra Corporation Ltd (ASX:TLS) is one of three high-yielding dividend shares I would pick up today.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earlier today I wrote about how weak inflation and wage growth in Australia has me believing that a rate hike by the Reserve Bank could be off the cards until late in 2019.

If this proves to be the case then the paltry interest rates on offer from savings accounts and term deposits are likely to be here for a long time to come.

Fortunately for income investors the local share market has a great number of quality dividend shares that provide generous yields.

Three of my favourites right now are listed below:

National Storage REIT (ASX: NSR)

As the largest self-storage operator in Australia/New Zealand with 127 centres, I believe National Storage is well-positioned to benefit from the growing demand for storage services. This rising demand could lead to high occupancy levels and ultimately solid profit and distribution growth. Another positive is the company's development pipeline which includes 11 new developments and several new expansion projects. In FY 2018 management has guided to a distribution of between 9.6 and 10 cents per share, equating to a yield of approximately 6%.

Shriro Holdings Ltd (ASX: SHM)

I think it is fair to say that this kitchen appliance and consumer products company is flying under the radar of most investors right now. Which I feel could make it a great time to snap up shares, especially as they trade at just 9x trailing earnings and offer a trailing fully franked 8% dividend. If the company's international expansion is a success, I expect it will be positioned perfectly to continue its solid profit and dividend growth for many years to come.

Telstra Corporation Ltd (ASX: TLS)

This telco giant's share price decline over the last 12 months has been a disaster for long-term shareholders, but for non-shareholders I think it is a buying opportunity. Especially as its plan to pay a 22 cents per share annual dividend equates to a fully franked 7.1% yield at the current share price. I remain confident that Telstra will be able to maintain this dividend for at least the next couple of years, after which a lot will depend on its cost cutting success, the arrival of 5G internet, and NBN margins.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended National Storage REIT. 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 Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »