With rates at ultra-low levels and unlikely to improve any time soon, I think investors ought to look beyond savings accounts and term deposits in favour of the share market and the high number of quality dividend shares it has on offer.
Three top dividend shares that I would buy in April are listed below:
Accent Group Ltd (ASX: AX1)
Accent is the footwear-focused retail group behind retail chains such as The Athlete's Foot, HYPE DC, and Platypus. Although trading conditions have been tough in the retail sector, Accent has continued to perform strongly. It posted a 27.3% increase in net profit after tax to $32.2 million during the first half thanks to a combination of like for like sales growth and strong gross margin improvement. This allowed the company to increase its interim dividend by 50%, meaning its shares now provide a trailing fully franked 5.7% yield. And with management expected second-half EBITDA to grow by 10%, there's a good chance its final dividend will also be increased.
Dicker Data Ltd (ASX: DDR)
I think that this wholesale distributor of computer hardware and software in Australia and New Zealand is a great option for income investors due to its robust business mode, high levels of insider ownership, and positive growth prospects. Another bonus is that the company pays its dividends in quarterly instalments, which is great for investors looking for a regular income stream. In FY 2019 Dicker Data aims to pay a 22 cents per share fully franked dividend, which equates to a 5.5% yield based on its last close price.
National Australia Bank Ltd (ASX: NAB)
One of my favourite options in the banking sector right now is NAB. I think its shares are trading at a very attractive level and would be a great option for income investors that have limited exposure to the banks already. Although there are concerns that it may have to cut its dividend in order to meet APRA's stated unquestionably strong capital requirement of 10.5%, I believe this risk has already being priced in. At present NAB's shares offer a trailing fully franked 7.9% dividend.
