One of the most widely held dividend shares on the Australian share market is Telstra Corporation Ltd (ASX: TLS).
While the telco giant has been a fantastic option for income investors in the past, this simply has not been the case in recent years.
Unfortunately, I'm not expecting much to change for a few years due to low NBN margins and the expected gap in its earnings when the NBN rollout completes. In light of this, I believe there's a good chance that the Telstra board will be forced to cut its dividend this year and next.
So rather than buying Telstra shares today, I would suggest investors pick up these top dividend shares instead:
Australia and New Zealand Banking Group (ASX: ANZ)
With the Royal Commission final report due to be released in February, it won't be long until this dark cloud lifts. And if the report includes no nasty surprises, I expect investors to start to return to the banks again to take advantage of their low prices and generous dividends. At present ANZ Bank's shares offer a trailing fully franked 6.8% dividend.
BHP Group Ltd (ASX: BHP)
Another great option for income investors could be this mining giant. BHP's shares currently provide investors with a trailing fully franked 4.7% dividend. This doesn't include the recently announced US$1.02 (A$1.44) per share special dividend which will be paid to eligible shareholders in January. This special dividend alone equates to a 4.3% yield. The good news is that its shares don't go ex-dividend until January 10, giving investors plenty of time to get hold of it.
Super Retail Group Ltd (ASX: SUL)
Super Retail is the retail group behind brands including Rebel, Macpac, and Super Cheap Auto. At present its shares are trading at just 10x earnings and offer a very generous trailing fully franked 7% dividend yield. With all its brands reporting solid like for like sales growth year to date, I think it is in a good position to grow its dividend further this year.
