Luckily for income investors in this low interest rate environment, the Australian share market has a large number of quality dividend shares.
Three that I would buy this week are listed below, here's why I like them:
Coles Group Ltd (ASX: COL)
I think this supermarket giant would be a great option for income investors due to its defensive qualities, strong market position, and plans to pay out between 80% and 90% of its earnings as dividends. Furthermore, I believe its long-term growth prospects are positive due partly to its focus on automation. The automation of its distribution centres is expected to help the company slash operating costs and lift its margins in the coming years. I estimate that its shares currently offer a 5% FY 2020 dividend yield.
Dicker Data Ltd (ASX: DDR)
One of my favourite dividend shares on the Australian share market is this wholesale distributor of computer hardware and software. The founder-led company may have been a strong performer over the last 12 months, but I don't believe it is too late to pick up shares. Management recently provided its guidance for sales and profit growth of 10% in FY 2019, allowing the board to guide to a 22 cents per share dividend in FY 2019. This equates to a forward fully franked 5.9% yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another top dividend share to consider this week is this airport operator. As the main gateway into Australia, I believe that Sydney Airport is well-positioned to benefit from the tourism boom and expect it to continue growing its earnings and distribution at a solid rate over the next decade. This year Sydney Airport plans to pay a 39 cents per share distribution, which works out to be a 5.2% forward yield based on its last close price.
