MENU

These high-yield dividend shares could be great options for income investors

With the Reserve Bank of Australia tipped to keep rates on hold until 2020 by some economists, the low interest environment we are living in doesn’t look likely to be ending any time soon.

Luckily the Australian share market is coming to the rescue of income investors with a plethora of dividend shares that offer yields of 5% and above.

Two that I think are great options for income investors are listed below:

Australia and New Zealand Banking Group (ASX: ANZ)

Although bank shares have pushed notably higher over the last couple of weeks, I think ANZ Bank and the rest of the big four are still trading at very attractive levels for both value and income investors. At the current price, ANZ Bank’s shares offer a trailing fully franked 5.6% dividend. While there are concerns that a dividend cut could be on the horizon, one broker that doesn’t appear to agree is Goldman Sachs. Earlier this month it once again retained its conviction buy rating and $32.92 price target on the bank’s shares.

BWP Trust (ASX: BWP)

One of the best performing retailers in Australia over the last few years has been Bunnings Warehouse, which is owned and operated by Wesfarmers Ltd (ASX: WES). While you could invest in Wesfarmers to get exposure to it, I actually think one of the best ways to gain exposure to Bunnings is through BWP Trust. This is because BWP Trust is a listed managed investment scheme which invests in commercial real estate throughout Australia and rents the majority of its properties out to Bunnings Warehouse. Considering Bunnings’ ongoing success, I think BWP Trust can continue growing its earnings and distribution at a solid and predictable rate for the foreseeable future. BWP Trust’s shares currently provide a trailing 5.4% dividend.

OUR #1 dividend pick for JULY 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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended BWP Trust. 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.