With an average dividend yield of 4%, the Australian share market is one of the most generous in the world. Which certainly is helpful for income investors in this low interest environment.
But with so much choice, it can be hard to decide which dividend shares to buy.
To help you on your way, I’ve picked out three dividend stars I think are worth a closer look. They are as follows:
National Storage REIT (ASX: NSR)
Even though National Storage shares are closing in on an all-time high, they still offer income investors an above-average trailing distribution yield of approximately 5.5%. Thanks to its expansion and redevelopment plans, I believe the storage giant is in a position to continue to grow its dividend over the coming years, potentially making it one of the best dividend shares on the market right now.
Super Retail Group Ltd (ASX: SUL)
This retail conglomerate has also seen its share price rally notably higher over the last few months. But despite the strong gain, its shares still provide a trailing fully franked 5.5% dividend. Furthermore, its shares are changing hands at a reasonably cheap 12x estimated full-year earnings. I think this could make it a bargain buy if the company’s acquisition of the popular Macpac brand turns around the performance of its struggling Leisure segment.
Westpac Banking Corp (ASX: WBC)
The banks are amongst the most unloved shares on the market at the moment, but I don’t expect that to last too long at current prices. With almost all the big four’s shares changing hands on lower than historic average multiples, I think they are attractively priced for patient investors. Especially given the yields on offer. My preference remains Australia’s oldest bank, Westpac. At present its shares offer a generous trailing fully franked 6.3% dividend.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Super Retail Group 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.