With an average dividend yield of approximately 4%, I believe the Australian share market is a great place to invest your money if you're searching for an alternative to term deposits and high interest savings accounts.
Three high yield dividend shares that I would consider buying this week are listed below:
Adairs Ltd (ASX: ADH)
This homewares retailer's shares were sold off on Monday after it downgraded its full year guidance ever so slightly following the release of its half year results. Given the low multiples that its shares already traded on, I think this was an overreaction and has left them trading at an even more attractive level. Especially considering how management increased its interim dividend by 18% and advised that like-for-like sales are up 7.1% so far in the second half. That dividend increase means that Adairs' shares offer a fully franked 7.7% dividend yield now.
Dicker Data Ltd (ASX: DDR)
Although the shares of this wholesale distributor of computer hardware and software have rallied strongly since the release of its impressive full year results, they still offer a very generous dividend yield. Dicker Data's shares provide a trailing fully franked 6.1% dividend, which is paid in quarterly instalments. I believe this and its solid growth prospects makes Dicker Data an attractive option for investors in search of more regular income.
National Australia Bank Ltd (ASX: NAB)
This banking giant's shares currently offer investors a massive trailing fully franked 8% dividend. There has been a lot of talk of NAB needing to cut its dividend in order to achieve the CET1 target ratio by 2020, but I'm optimistic that the bank's overweight exposure to a strong performing business lending market could put it in a position to maintain it. However, if it is forced to trim its dividend, I expect its yield to be still around the 7% mark, making it well worth considering if you're an income investor.
