With interest rates at low levels and showing little signs of improving in the near term, I think income investors ought to consider the large number of Australian shares currently offering generous dividend yields.
Three that I think could be great options today are listed below. Here’s why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
I think that ANZ Bank could be a great option for income investors right now following its solid full year result. Especially given the fact that its shares trade on lower than average multiples and offer a generous dividend yield. Another bonus is the fact that its shares go ex-dividend for its fully franked 80 cents per share final dividend next week. Based on its current share price, this final dividend alone equates to a yield of approximately 2.95%. Whereas on a trailing basis its shares offer an above-average 5.9% yield.
Rural Funds Group (ASX: RFF)
This agriculture-focused real estate investment trust is one of my favourite dividend shares. Rural Funds owns a diverse portfolio of properties across different states and sectors including wine, cattle, and almond production. As these properties have long leases and rental indexation mechanisms built in, it provides Rural Funds with a growing and predictable income stream to fund its distributions. In FY 2019 the Rural Funds board intends to lift its distribution to 10.43 cents per unit, which works out to be a forward yield of approximately 4.75%.
WAM Capital Limited (ASX: WAM)
If you’re interested in listed investment companies then I think WAM Capital could be worth a closer look. WAM Capital’s strategy of investing in undervalued growth shares has been very successful over the last few years, allowing the company to increase its dividend for nine years in a row. I expect the company to continue this run in FY 2019 and make it a decade of increases. WAM Capital’s shares currently offer a trailing fully franked 6.6% yield.
And don't miss the number one dividend pick for November. It may not have a massive yield, but it looks set to grow strongly over the next decade.
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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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.