With an average dividend yield of approximately 4%, the Australian share market is one of the most generous share markets in the world.
But with so many dividend shares to choose from, it can be hard to decide which ones to buy. Here are my top three dividend shares right now:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a founder-led computer software and hardware wholesale distributor which I think would be a great fit for income investors. Due to its robust business model and favourable tailwinds in certain areas of its business, I believe Dicker Data is well-positioned to deliver solid earnings and dividend growth over the coming years. This year management intends to pay a full year fully franked dividend of 18 cents per share in quarterly instalments. This works out to be a yield of 5.9% today.
National Storage REIT (ASX: NSR)
National Storage is a real estate investment trust with a focus on self-storage assets. In FY 2018 the trust posted a strong result which saw underlying earnings grow 12.5% to $51.4 million. This was partly driven by a 3.8% increase in same-centre revenue per available square metre to $220 and a 330 basis points rise in occupancy levels to 80.8%. The strong result allowed the National Storage board to lift its distribution to 9.6 cents per unit, which works out to be a trailing yield of 5.6% based on the current share price. I feel this distribution could continue to grow over the next few years thanks to a combination of organic growth and growth through acquisition.
Westpac Banking Corp (ASX: WBC)
I think it is fair to say that the banks are largely out of favour with investors at present. This has led to their shares being dumped and their share prices sinking towards 52-week lows. I see this as a buying opportunity, especially for income investors in search of dividends. After all, the shares of Australia’s oldest bank now offer a trailing fully franked 6.8% dividend yield. And thanks to its out of cycle rate rises, I feel there’s a chance that this dividend could rise in FY 2019.
Not keen on the banks? Then here's a fourth top dividend share to consider instead of it.
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!
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
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.