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3 high yield dividend shares I would buy this week

Luckily for income investors in this low interest environment, the Australian share market is one of the most generous in the world with an average dividend yield of approximately 4%.

Three shares that provide higher-than-average yields are listed below. Here’s why I think investors ought to consider snapping them up today:

Dicker Data Ltd (ASX: DDR)

Thanks to the introduction of several new vendors in 2017 and the solid performance of existing vendors, this software and hardware wholesale distributor has had an impressive start to FY 2018. Profit before tax in the first-quarter came to $9.2 million, 22.8% higher than the prior corresponding period. If this strong form continues for the rest of the year, I wouldn’t be surprised to see Dicker Data increase its pay out ahead of its guidance of 18 cents per share. But even if it doesn’t, this proposed pay out still equates to a generous fully franked 6.2% yield and is paid in quarterly instalments.

National Australia Bank Ltd (ASX: NAB)

While this banking giant is not necessarily my first pick in the industry, I still think it is a great option for investors with little exposure to the banks. Especially considering its shares are due to go ex-dividend tomorrow for its interim 99 cents per share fully franked dividend. Annualised this equates to a 7% yield based on the bank’s last close price, which is hard to say no to in such a low interest environment. The interim dividend will be paid to eligible shareholders on July 5.

Super Retail Group Ltd (ASX: SUL)

I think that this retail conglomerate could be a great option for income investors. Based on its last close price, Super Retail’s shares offer investors a trailing fully franked 5.9% dividend currently. I think this generous yield and its undemanding valuation make it very attractive, especially given how brokers have suddenly turned very positive on it. Both Goldman Sachs and Ord Minnett have recently slapped buy ratings on its shares.

And this fourth dividend share could be equally good. It may not have the biggest yield on the market, but I believe it is capable of growing its significantly over the next decade.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of National Australia Bank Limited and Super Retail Group 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.

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