Luckily for savers in this low interest rate environment, the Australian share market is home to a large number of dividend shares with very generous yields.
Three which I think are great options for income investors right now are listed below. Here’s why I would buy them:
Australia and New Zealand Banking Group (ASX: ANZ)
This banking giant’s shares have risen strongly in 2019 but still offer a generous trailing fully franked 6% dividend yield. I think this makes it a great option for income investors that have little to no exposure to the banking sector at present. And while all big four banks offer above-average yields, ANZ remains my favourite due to its strong capital position and overweight exposure to a solid performing commercial lending market.
Rural Funds Group (ASX: RFF)
One of my favourite dividend shares on the ASX is this real estate property trust which has a focus on rural assets. At the end of the first half the trust owned a total of 49 properties across six agricultural sectors and multiple climactic zones throughout Australia. It also had a weighted average lease expiry of 11.4 years, which I believe provides a lot of certainty for its future cash flows and ultimately its dividend. This year the trust intends to pay a total distribution of 10.85 cents per unit, which equates to a yield of 4.8%.
Super Retail Group Ltd (ASX: SUL)
If you’re willing to invest in the retail sector then I think Super Retail would be a great option. Especially considering the way the company has been performing despite the tough trading conditions. In the first half Super Retail grew profits by 8.9% and looks well-positioned to deliver similar growth in the second half after it started it on a positive note. I believe this has put the company in a solid position to grow its dividend, which at present offers investors a trailing fully franked 6.2% yield.
NEW! The Motley Fool’s team of crack analysts has just released a timely report revealing the names and codes of their top 3 dividend share recommendations for 2019. Be among the first investors to get access—FREE, for a strictly limited time. You’ll discover the names of 3 hefty dividend paying companies with what our analysts consider to be solid growth prospects for the year ahead…
The first two currently offer fat, fully franked yields and the third is a surprising REIT offering you the chance to become a landlord with none of the hassle! If you’re looking for hot new ideas, look no further. But you do need to hurry. Snap up your free copy now, before supplies run out!
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. The Motley Fool Australia owns shares of 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.