With the cash rate at a record low and unlikely to change any time soon, I think the share market is a great place for investors to find a source of income.
Three top dividend shares I would consider this week are listed below. Here’s why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
I think many of the banks are great options for income investors right now due to their relatively cheap prices and generous dividends. One of my favourites is ANZ Bank, especially after the banking giant lifted its variable mortgage rates last week in an effort to offset increasing funding costs. I believe this was a smart move and will put it in a stronger financial position. Furthermore, with low bad debt levels and a high CET1 ratio, I believe its dividend is not only secure, but could potentially be increased in FY 2019. At present its shares offer a trailing fully franked 5.6% yield.
National Storage REIT (ASX: NSR)
This real estate investment trust could be a great option for income investors. The self-storage giant delivered a 12.5% increase in underlying earnings to $51.4 million in FY 2018, allowing the National Storage board to lift its distribution to 9.6 cents per unit. This works out to be a market-beating trailing distribution yield of 5.7% at the current share price. The good news is that I think this distribution could continue to grow over the next few years thanks to a combination of organic growth and growth through acquisition.
WAM Capital Limited (ASX: WAM)
Another top option for income investors could be this listed investment company. WAM Capital provides investors with exposure to an actively managed diversified portfolio of growth companies which it believes are undervalued. The company’s strategy has been very effective over the last few years, leading to solid earnings and dividend growth. In fact, the WAM board has increased its dividend for no less than nine consecutive years. This means its shares now offer a trailing fully franked 6.3% dividend today.
Looking for more income ideas? Check out this dividend share which was named as the top pick this financial year.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.