MENU

3 top dividend ideas for income investors

Unfortunately for income investors, it is very difficult to generate meaningful income from bank accounts and term deposits in this low interest environment.

Because of this, I think the best place to find a good source of income is the share market and one of its many generous dividend payers. Here are three dividend ideas for income investors:

Dicker Data Ltd (ASX: DDR)

Dicker Data is a founder-led computer software and hardware wholesale distributor which I rate very highly. Despite its shares rising a solid 12% since this time last year, they still provide one of the more generous yields on the market. Based on its plan to pay an 18 cents per share dividend in FY 2018, Dicker Data’s shares currently offer a forward fully franked 6% dividend. This is paid in quarterly instalments, making it a very attractive option for investors in search of a regular pay check. Furthermore, due to its industry-leading business and positive outlook, I think there’s every chance that FY 2019 will see yet another dividend increase.

National Storage REIT (ASX: NSR)

This self-storage giant is another company that I think income investors ought to consider. Population growth and downsizing has led to positive trading conditions and increasing demand for its services. National Storage has responded positively by increasing its centre network and redeveloping existing sites. I believe this has positioned it well to grow its distribution at a solid rate over the coming years. At present its shares offer an above-average trailing distribution yield of approximately 5.6%.

Rural Funds Group (ASX: RFF)

Rural Funds is one of my favourite real estate investment trusts on the Australian share market. Thanks to its diverse portfolio of agricultural assets and long-term tenancy agreements which have rental indexation built into them, I believe it is well-placed to grow its earnings and dividend at a solid rate over the next decade. Because of this, I think it could be a great long-term buy and hold investment option for income investors. Rural Funds’ shares currently provide a trailing 5.2% dividend which is paid in quarterly instalments.

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.

Click here it's FREE!

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

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.