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3 high yield ASX dividend shares to buy in February

I’ve been very encouraged by the solid start to 2019 that the ASX 200 has had and remain positive that it will continue to build on this as the year progresses.

One thing that I’m not positive on is the cash rate. I suspect that this will remain on hold for the entirety of 2019 and for much of 2020.

In light of this, if I were an income investor I would consider buying these high yield dividend shares next month:

National Australia Bank Ltd (ASX: NAB)

I think that all the big four banks are in the buy zone right now, but one of my favourites would have to be National Australia Bank. Due to its overweight exposure to business banking, I think it is well-positioned to outperform the industry in 2019. Especially after it followed the lead of the other banks by deciding to lift its variable interest rates. I expect this to allow it to maintain its $1.98 per share dividend in FY 2019, meaning its shares potentially offer a forward fully franked 8% yield currently. However, at the end of next week the Royal Commission final report is due to be handed down, so it may be best to hold off buying shares until this has been released.

Super Retail Group Ltd (ASX: SUL)

Another high yield dividend option to consider is Super Retail. It is the company behind popular retail brands including Super Cheap Auto, Rebel, and Macpac. Concerns over softening consumer sentiment and the exit of its CEO have weighed heavily on its shares in recent months. But with its shares now trading below 10x earnings, I think this selloff has created a buying opportunity for investors. Especially as they offer a trailing fully franked 6.5% dividend.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

A final option for income investors to consider in February is this airport operator. Due to the inbound and outbound tourism boom, I think Sydney Airport is well-positioned to continue growing its earnings and dividend at a solid rate over the coming years. A recent note out of Goldman Sachs labelled its shares as a buy with an $8.12 price target. Goldman expects a 41 cents per share dividend in FY 2019, equating to a forward 6.1% yield.

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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 National Australia Bank Limited and 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.

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