Why I would want these high yield dividend shares in my portfolio

Earlier this week the Reserve Bank of Australia kept rates on hold for yet another month.

Unfortunately for savers this is expected to be the case for many more months, meaning we will be living in this low interest environment for some time to come.

Because of this, I think savers ought to look to the share market instead of earning paltry interest from savings accounts.

Three high yield dividend shares I would want in my portfolio are listed below:

Dicker Data Ltd (ASX: DDR)

Arguably my favourite dividend share on the Australian share market is this computer software and hardware wholesale distributor. I’ve been very impressed with the way the company has performed over the last few years and believe there could be more of the same in FY 2019. Especially after the company’s most recent update revealed that its sales growth year-to-date was outperforming its guidance. And with an insider recently picking up a considerable number of shares on-market, I feel this is a sign that trading has remained strong since the last update. Management intends to pay an 18 cents per share fully franked dividend in quarterly instalments this year, which equates to a 6.3% yield based on its last close price.

National Storage REIT (ASX: NSR)

This storage giant’s shares may have recently climbed to a multi-year high, but I don’t think it is too late for investors to buy shares with a long-term view. Especially given the positive outlook the company has over the medium term thanks to its growing network of storage facilities, strong market position, and rising demand. I feel this puts National Storage in a good position to grow its earnings and distribution at a steady rate over the coming years. In FY 2018 the company paid an annual distribution of 9.6 cents per share, which equates to a yield of 5.6%.

Westpac Banking Corp (ASX: WBC)

Westpac and the rest of the banks have been major drags on the market over the last 12 months due to the bank tax levy and the Royal Commission. And while they have recovered slightly in recent weeks, they still trade at very attractive prices in my opinion. Conditions in the banking sector are likely to remain tough for some time, but I think potential out of cycle rate rises could allow Westpac to continue growing its earnings and at least maintain its dividend over the coming years. As such, I feel it could be a good option for income investors with no exposure to the banking sector. Its shares provide a trailing fully franked 6.4% dividend currently.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended National Storage REIT. 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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