Luckily in this low interest rate environment the Australian share market has a plethora of dividend shares for income investors to consider.
Three top shares that I would look at buying this week are listed below:
Accent Group Ltd (ASX: AX1)
This footwear retailer had a reasonably disappointing FY 2017 but returned to form with a bang in FY 2018. Accent, formerly known as RCG Corporation, grew its net profit after tax by 17.9% to $47.1 million last year thanks to strong online sales growth and a significant improvement in its gross profit margin through vertical brand sales and reduced discounting. Its Digital sales were the highlight for me, growing by an impressive 131% on the prior corresponding period despite the arrival of Amazon in Australia. Pleasingly, the company has had a positive start to FY 2019 and is tracking ahead of its like for like sales growth targets. I believe this positions Accent perfectly to grow its earnings and dividend again this year. At present its shares offer a trailing fully franked 4.1% dividend.
BHP Billiton Limited (ASX: BHP)
Investors that aren’t afraid of having a little exposure to the resources sector might want to consider the Big Australian. This mining giant was another strong performer in FY 2018 and looks well-positioned to continue its positive run in FY 2019 thanks to favourable commodity prices. If a trade war doesn’t have a negative impact on commodity prices, I expect BHP to generate bumper free cash flows and increase its dividend again this year. In addition to this, I expect the proceeds from recent asset sales are likely to find their way back to shareholders in the form of dividends or share buybacks. At present BHP’s shares offer a trailing fully franked 4.7% dividend.
WAM Capital Limited (ASX: WAM)
Another company which I believe is well-positioned to continue growing its dividend is WAM Capital. The listed investment company provides investors with exposure to an actively managed diversified portfolio of growth companies which it feels are undervalued. This winning strategy has led to the WAM board being able to increase its dividend for nine consecutive years. Last month’s dividend increase means that WAM Capital’s shares now offer a trailing fully franked 6% dividend.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.