At present the All Ordinaries (Index: ^AXAO) (ASX: XAO) provides income investors with an average dividend yield of approximately 4%.
This certainly is handy given the paltry interest rates on offer from other interest-bearing options such as savings accounts and term deposits.
But with so much choice, it can be hard to decide which dividend shares to buy.
To help you on your way, I've picked out three dividend shares which I think could be the best options for income investors right now. They are as follows:
Australia and New Zealand Banking Group (ASX: ANZ)
Once the Royal Commission final report has been released and the recommendations have been fully understood, I think income investors ought to consider buying the big four banks. My top pick in the group is ANZ due to its valuation, dividend yield, and prospects in FY 2019. In respect to the latter, I believe its exposure to a business lending market which is performing well has put it in a strong position in FY 2019. ANZ's shares currently provide a trailing fully franked 6.4% dividend.
Dicker Data Ltd (ASX: DDR)
Another top dividend pick right now in my eyes is this leading computer hardware and software distributor. Last week Dicker Data released its unaudited full year results for FY 2018 and delivered another strong result. Thanks to a combination of new vendors and solid growth from existing vendors, Dicker Data posted a 15% increase in profit before tax. I expect another solid year in FY 2019, putting the company in a position to grow its dividend once again. At present Dicker Data's shares offer a fully franked 6% yield.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate property trust which I think is a great option for income investors. The trust owns a portfolio of rural properties across different geographies and farming industries including cattle, poultry, and vineyards. One key attraction to the trust for me is its high quality tenants and the fact that it has long-term tenancy agreements with rental indexation built into them. I believe this puts the trust in a position to grow its distribution each year at a solid and predictable rate. At present its units offer a trailing 4.7% yield.
