With an average dividend yield of over 4%, the Australian share market is one of the most generous markets in the world.
Which certainly is good news for income investors in this low interest rate environment. But with so many dividend shares to choose from, it can be hard to decide which ones to buy.
Three that I would suggest income investors consider this week are listed below. Here’s why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don’t have exposure to the banks already then ANZ Bank could be a good option. Especially given the fact that the banking giant’s shares go ex-dividend for its final fully franked 80 cents per share dividend this time next week. The final dividend alone equates to a yield of approximately 3.1% based on its current share price. On a trailing basis its shares offer a 6.2% yield currently.
Super Retail Group Ltd (ASX: SUL)
I think that this retail group could be worth considering as well. The market sold off its shares last month after it announced the retirement of its long-serving and popular CEO. While his retirement was disappointing, I think the selloff that ensued was overdone and has left its shares trading at a bargain price. Especially given that the company also reported solid like for likes sales growth across all its business so far in FY 2019. Super Retail’s shares are priced at 10x earnings and offer a trailing fully franked 6.7% dividend.
Sydney Airport Holdings Ltd (ASX: SYD)
Another dividend share worth considering is the operator of Sydney Airport. This year the airport operator is expected to grow its dividend to 37.5 cents per stapled security, which equates to a yield of 5.9% based on its current trading price. And thanks to the inbound and outbound tourism boom that Australia is experiencing, I feel confident that this dividend can continue its growth for many years to come. While its share price could come under pressure if bond yields widen, I think this risk has been largely priced in now.
And don't miss this growing dividend share tipped for big things in 2019.
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 owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of Super Retail Group 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.