MENU

3 dividend shares with yields over 5.25%

Dividends are one of the most pleasing aspects about investing in shares. It’s so satisfying to do no work for the companies you own, yet receive a dividend every six months (or even every quarter).

Not only that, but the income on offer from many ASX shares is a lot higher than you could possibly get from all the various bank accounts that are out there. Even the best ones only offer an interest rate of around 2.8% to 3%.

So, to solve that income dilemma, here are three excellent income shares on the ASX:

Arena REIT No 1 (ASX: ARF)

Arena is a real estate investment trust (REIT) that invests in ‘specialised’ assets in growing sectors that are supported by favourable demographic and economic trends. This has resulted in a bulk of the assets being childcare centres, but it also owns a few medical buildings as well.

It has generated operating earnings growth in each of the last few years thanks to the regular rent increases that it has achieved with its tenants. This has allowed the distribution to steadily increase as well.

It currently has a distribution yield of 5.6%.

Naos Emerging Opportunities Company Ltd (ASX: NCC)

This is a listed investment company (LIC) that invests at the small end of the share market, it look at shares with market caps under $250 million. I like this strategy because there are few investment managers, analysts or indeed regular investors that hunt in the small cap space.

It has been successful with this strategy, since inception its portfolio has delivered a return per annum of 16.27%, before fees. That’s pretty good over a period of five-ish years.

It currently has a trailing grossed-up dividend yield of 8.8%.

Tassal Group Limited (ASX: TGR)

Tassal is Australia’s largest fish company with its large salmon farms in Australia’s waters and also a large wholesale business.

There is a growing demand for healthier food in Australia and overseas, particularly fish. I expect demand will continue to rise, particularly from Asia, for healthy Australian food. Tassal is steadily growing its operating earnings and its dividend over time.

It currently has a grossed-up dividend yield of 5.3%

Foolish takeaway

All three shares have an attractive dividend yield. However, I would have to pick the Naos LIC out of the three because of its large dividend yield and impressive performance to date.

An even better dividend pick could be this exciting share that just increased its dividend by more than 25%.

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 Tristan Harrison owns shares of ARENA REIT STAPLED. The Motley Fool Australia has no position in any of the stocks mentioned. 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.