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These top dividend shares could be perfect for income investors

The latest FOMC minutes in the United States revealed that the majority of Fed officials are keen for the central bank to push ahead with regular rate rises.

Unfortunately the same cannot be said over here in Australia where the majority of economists expects rates to be held at 1.5% until 2020.

This could mean that it is several years until rates rise to anything that income investors would consider to be sufficient to live from.

Because of this, I think the local share market and its average dividend yield of approximately 4% is a great option for income investors.

Three top dividend shares that I think are worth a closer look are listed below. Here’s why I like them:

Aventus Retail Property Fund (ASX: AVN)

Aventus is a property group with a focus on retail parks across Australia. At the last count it owned 20 retail parks and counted many of the country’s biggest retailers such as Bunnings, The Good Guys, and Officeworks as tenants. As I think these are less likely to close stores and default on rent payments than smaller independent retailers that you might find inside a Westfield, I feel confident that it has a positive outlook over the next couple of years at least. Its shares currently provide a trailing 7.2% distribution yield.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust focusing on agricultural assets. It has a large and diverse asset base which enjoys long tenancy agreements and include rental indexation. Given how Australia is quickly becoming the food bowl of Asia, I think its assets will always be in demand. I expect this to put Rural Funds in a position to consistently grow its earnings and dividend over the coming years. At present its shares provide a trailing yield of 4.9%.

Super Retail Group Ltd (ASX: SUL)

Due to its reasonable valuation and above-average dividend yield, I think Super Retail is one of the best dividend options in the retail sector. And if its recent acquisition of the Macpac brand is as successful as management hopes, then it could position Super Retail for strong growth over the medium term. The company’s shares currently offer income investors a trailing fully franked 5.5% dividend.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Super Retail Group Limited. 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.

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