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4 top dividend shares for income investors

Due to its average dividend yield of approximately 4%, I think the Australian share market is a great place to look for a source of income in this low interest environment.

Here are a few top dividend shares to consider:

BHP Billiton Limited (ASX: BHP)

On Tuesday this mining giant released its full-year results which revealed a 20% jump in revenue to US$43.6 billion and a 33% increase in underlying profit to US$8.9 million. This strong result was driven by the winning combination of higher commodity prices and increased production of its key commodities.

The jump in profits allowed the company to declare a final dividend of 63 U.S. cents per share, bringing its full-year dividend to a fully franked 118 U.S. cents per share. This is an increase of 42% on FY 2017’s dividend and equates to a yield of 4.8% based on its last close price. As long as a trade war doesn’t derail global growth, I believe BHP can continue growing its profits and dividend at a solid rate for some time to come. For similar reasons I think mining rival Rio Tinto Limited (ASX: RIO) could be worth a look.

Super Retail Group Ltd (ASX: SUL)

Super Retail also released a strong full-year result on Tuesday. Its shares rocketed higher after the company reported a net profit after tax of $128.3 million on total sales of $2,570 million. This was a 26% and 4.2% increase, respectively, on FY 2017’s result. Despite the strong share price gain, its shares still offer an attractive fully franked yield of 5% based on the last close price.

In addition to this, with all the company’s brands starting FY 2019 strongly, it looks set to be another positive year of profit and dividend growth in FY 2019. As a result, I think Super Retail is one of the best options in the retail sector right now for income investors. Industry peer Accent Group Ltd (ASX: AX1) could also be worth considering as well.

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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 Super Retail Group Limited. 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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