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3 top dividend shares on my shopping list

With an average dividend yield of approximately 4%, there certainly is a lot of choice for income investors on the Australian share market.

So much so, it can be hard to decide which dividend shares to buy.

To help you on your way I have picked out three top dividend shares that I think are in the buy zone today:

Rio Tinto Limited (ASX: RIO)

One of the best dividend options in the resources sector in my opinion is Rio Tinto. As long as a global trade war doesn’t derail the strong global economic growth being exhibited, I believe the mining giant will generate significant free cash flow over the next couple of years from favourable prices of the key commodities it produces. This, combined with the recent sales of non-core assets, should put Rio Tinto in a position to reward shareholders with growing dividends. At present its shares offer a trailing fully franked 4.5% dividend.

Super Retail Group Ltd (ASX: SUL)

Although its shares hit a 52-week high today, this retail conglomerate still provides income investors with a generous trailing fully franked 5% dividend. Investors have been fighting to get hold of Super Retail’s shares on the belief that its acquisition of the popular Macpac brand will turn around the performance of its Leisure segment. This segment has weighed on its performance in recent times, offsetting the growth of its Auto segment. If it is a success, which I’m optimistic it will be, then Super Retail could be poised for solid earnings and dividend growth in the coming years.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport Holdings is the operator of Australia’s busiest airport. Due to the inbound and outbound tourism boom that Australia is experiencing, I expect the company to benefit from the rising number of tourists passing through its gates and spending money in its retail stores and car parks. With the tourism boom showing no signs of slowing, I expect Sydney Airport to grow both its earnings and distribution at a solid rate for the foreseeable future. Its shares currently offer a trailing 5.1% distribution.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

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