MENU

3 top dividend shares I would buy in May

This morning Westpac Banking Corp (ASX: WBC) delivered a first-half result which beat the market’s expectations.

I believe the result demonstrates why the banking giant would be a great option for income investors that don’t already have meaningful exposure to the banks.

But for those investors that are already overweight with banks, here are three non-bank dividend shares that I would be picking up today:

Accent Group Ltd (ASX: AX1)

Although its share price has been on a tear over the last 12 months, this footwear retailer’s shares still offer investors a trailing fully franked 4.9% dividend. I think this dividend could increase significantly in the future thanks to its expansion plans. Furthermore, although Amazon has arrived in Australia, I don’t see it as a huge threat. This is because Accent has exclusive and popular licensed brands which only it can sell in the local market.

Telstra Corporation Ltd (ASX: TLS)

Like the banks, the Telstra share price has been down in the dumps for much of this year. While some of its decline is clearly justified, I believe the selloff has been largely overdone and has left the telco giant’s shares trading at a very attractive price. This year Telstra intends to pay a 22 cents per share fully franked dividend, equating to a yield of 6.8%. Pleasingly, I believe this is sustainable for the next couple of years, after which a lot will depend on its cost cutting program, NBN margin improvements, and the arrival of 5G internet.

WAM Capital Limited (ASX: WAM)

I think this listed investment company is a great option for income investors due to the strong performance of its funds and its impressive track record of dividend increases. WAM Capital is on course to make it nine years of dividend increases in a row in FY 2018 after lifting its interim dividend earlier this year. At present WAM Capital’s shares offer a trailing fully franked 6.4% yield.

Here's another quality dividend share that has been increasing its dividend at a strong rate over the last few years.

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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!