Due to the paltry interest rates on offer from savings accounts and term deposits, I think that income investors would be better off skipping them and focusing on the many quality dividend shares trading on the Australian share market.
Three which I believe are in the buy zone right now are listed below. Here’s why I like them:
Dicker Data Ltd (ASX: DDR)
This wholesale distributor of computer hardware and software has seen its shares rocket higher this year thanks to a stronger than expected result in FY 2018 and positive guidance for the year ahead. Despite this, its shares still provide a generous forward fully franked dividend yield of approximately 5.1%.
National Storage REIT (ASX: NSR)
Thanks to the resilience of its business and focus on driving increased income from multiple revenue streams including operational performance, centre acquisitions, new developments, and expansions, this self-storage operator delivered a 17.4% increase in underlying earnings to $26.3 million in the first half of FY 2019. The good news is that management appears confident in its outlook and sees plenty of room for growth in a highly fragmented industry. This year the REIT intends to pay a distribution of between 9.6 cents and 9.9 cents per unit, which equates to a yield of between 5.6% and 5.8% at present.
Super Retail Group Ltd (ASX: SUL)
In the first half of FY 2019 this retailer overcame the tough trading conditions in the retail sector by delivering strong normalised profit growth. Super Retail grew normalised net profit after tax by 8.9% to $81.6 million thanks to growth across all segments. The star of the show was its outdoor segment which grew EBIT by 39.6% on the prior corresponding period. I expect more of the same in the second half, putting Super Retail in a position to increase its dividend. At present its shares provide a trailing fully franked 5.9% dividend yield.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended National Storage REIT. 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.