With an average dividend yield of circa 4%, the Australian share market has been a godsend for income investors in this low interest environment.
But with so much choice it can be hard to decide which dividend shares to buy. Here are three of my favourites right now:
Aventus Retail Property Fund (ASX: AVN)
I think that this retail property group could be a great option for income investors. Aventus owns retail parks with blue chip tenants such as Domayne, Harvey Norman Holdings Limited (ASX: HVN), and Nick Scali Limited (ASX: NCK). Earlier this year the company reported a 3.4% increase in half-year funds from operations (FFO) on the corresponding period to $45 million. With management expecting FFO to grow 2% to 3% for the full-year, I expect its distribution to grow at a similar rate. This would equate to approximately 16.3 cents per share or a full-year yield of 7.5%.
WAM Capital Limited (ASX: WAM)
WAM Capital is my favourite listed investment company on the Australian share market and arguably one of the best dividend shares on it. This year the company is on course to lift its dividend for a ninth consecutive year. And thanks to some quality stock picking and the strong performances of its funds, I believe there's a good chance it will make it ten in a row next year. WAM Capital's shares currently offer a trailing fully franked 6.4% dividend.
Westpac Banking Corp (ASX: WBC)
This banking giant's shares may have just gone ex-dividend, but I still think they are worth considering as an investment if you don't already have meaningful exposure to the banks. I thought Westpac's results were the strongest of the big four in the first half of FY 2018 and expect more of the same in the second half. So with its shares trading on multiples well below their historic averages, now could be an opportune time to snap up shares. Westpac's shares provide a trailing fully franked 6.5% dividend based on the last close price.
