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3 quality ASX 200 dividend shares

The income you can get by leaving money in the bank is pretty bad these days. I think it’s worth investing in quality ASX dividend shares.

It’s crazy to think that with a million dollars in the bank the most you might be able to get is $30,000, with most accounts offering less of a return than that.

So, what should an income-seeking investor do?

I think Australian shares are the answer. Many experts agree that, on the income side of things, Australian share investments are hard to match for the income they can produce.

Here are three good ideas:

Brickworks Limited (ASX: BKW)

There are few shares on the ASX with a dividend record like Brickworks. It has increased or maintained its dividend every year for the past 20 years.

It has managed to do this largely because of two reasons. Its construction segment, including Austral Bricks, has been generating long-term growth due to the population and building boom that Australia has experienced. This should continue over the long-term.

Its 42.7% holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has also done very well.

It currently has a grossed-up dividend yield of 4.5%.

Challenger Ltd (ASX: CGF)

Challenger has grown or maintained its dividend each year since 2005, including through the GFC which is pretty impressive for a financial business.

The business has been steadily growing thanks to a growing amount of annuity sales to retirees every year. People just want a reliable source of income without worrying about share markets.

However, I think it would be a good strategy to buy shares of Challenger and ride the retirement wave. It currently has a grossed-up dividend yield of 4.8%.

InvoCare Limited (ASX: IVC)

The leading funeral business in Australia and New Zealand has been steadily growing through acquisitions and the long-term growth rate in the number of funerals due to Australia’s ageing population.

Death volumes are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050. This is a strong, but morbid, tailwind.

It currently has a grossed-up dividend yield of 5.4%.

Foolish takeaway

At the current prices I believe all three are trading at attractive value for their long-term. If I could only pick one I’d go far Challenger – the next few years looks promising with a number of new distribution deals and supportive government policies coming through.

Another quality dividend ASX idea is this industry-leading stock that just increased its dividend by 20% last year and is now expanding to Asia.

The best dividend stock to buy in November

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 Tristan Harrison owns shares of Challenger Limited and InvoCare Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended Brickworks and InvoCare 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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