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.
