Why I would buy these high yield dividend shares in September

Next week the Reserve Bank of Australia will meet to discuss the cash rate once again.

Unfortunately for income investors, there is unlikely to be any change to rates next month or even next year for that matter. And if one leading bank’s economic team is to be believed, rates may stay on hold even longer.

According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the bank believes the cash rate will remain on hold throughout 2020 as well.

In light of this, I would suggest that income investors look to the share market and one of the many high yield dividend shares it has to offer for their income needs.

Two which I would buy in September are listed below:

Dicker Data Ltd (ASX: DDR)

On Monday this leading computer software and hardware wholesale distributor released its half year results and revealed a solid 13.5% increase in revenue to $717.6 million and an 11.9% lift in operating profit before tax to $21.75 million. The impressive result was driven by growth in both established vendors and new vendors in the company’s Australia segment.

Thanks to the strength of Hybrid IT, IOT, Digital Transformation and Wireless Technology market, I expect the second half to be equally strong. This should put the company in a comfortable position to pay out its 18 cents per share dividend as planned. This equates to a fully franked 5.9% yield based on its last close price.

National Storage REIT (ASX: NSR)

Another company that delivered a strong result in August was National Storage. The real estate investment trust grew its underlying earnings by 12.5% to $51.4 million in FY 2018 thanks to the expansion of its self-storage centre network and a rise in its occupancy levels.

Management continues to take advantage of the highly fragmented industry by acquiring new centres in strategic locations. I expect this to lead to steady distribution growth over the long-term, making it a low risk and quality option for income investors. At present its shares offer a trailing distribution yield of approximately 5.6%.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data 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.

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