MENU

Why I would buy these top dividend shares this week

On Tuesday the Reserve Bank of Australia will meet again to discuss the cash rate.

Most economists agree that the central bank will not only keep rates on hold this month, but also for the rest of the year.

Because of this I would skip savings accounts for a source of income and consider one of the many top dividend shares available to investors on the Australian share market instead.

Three that I think income investors ought to consider are listed below:

Aventus Retail Property Fund (ASX: AVN)

While I do have slight concerns that this retail property group could get caught up in a bond proxy selloff in the future, this potential eventuality may be two to three years down the line. Which could make it worth considering Aventus today, especially given the sizeable yield on offer. The large format retail centre (retail park) operator expects to grow funds from operations by as much as 3% this year. I estimate that this will result in a full-year distribution of 16.3 cents per share, which equates to a yield of almost 7.4%.

Collins Foods Ltd (ASX: CKF)

Collins Foods is one of the largest KFC franchisors in the world. And while it may not offer the biggest dividend yield on the local market, I believe that it has the potential to grow significantly in the future. This is due to its recent expansion into an underpenetrated European market. If this proves to be a success then I expect it to provide Collins Foods with the potential to grow its earnings at an above-average rate for the next decade. Based on the last close price, Collins Foods’ shares provide a trailing fully franked 3.1% dividend.

Westpac Banking Corp (ASX: WBC)

The Royal Commission has weighed heavily on the banks over the last couple of months and has left Westpac’s shares trading close to their 52-week low. With the Commission on a hiatus for three weeks and then returning with a focus on agribusiness, I suspect the pressure on the banks could start to ease. This could make it an opportune time to snap up the shares of Australia’s oldest bank, especially considering they offer a trailing fully franked 6.8% dividend currently.

Bonus pick.

This fourth dividend share could be the best of the lot. It may not have the biggest yield, but it is growing it at an exceptional rate.

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 Collins Foods Limited and Westpac Banking. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

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.