Should you buy Westpac and these ASX dividend shares?

Westpac Banking Corp (ASX:WBC) shares are one of three that I think income investors ought to buy this week…

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Luckily for savers in this low interest rate environment, the Australian share market is home to a large number of quality dividend shares offering generous yields.

Three dividend shares that I would buy this week are listed below. Here's why I like them:

Super Retail Group Ltd (ASX: SUL)

I think that this retail group would be a great option for investors in search of dividends. Super Retail has continued to grow its bottom line at a solid rate in FY 2019 despite the tough trading conditions being faced by retailers. In the first half the company posted an 8.9% increase in normalised net profit after tax to $81.6 million thanks partly to the strong performance of its outdoor segment. And with the company starting the second half strongly, I expect it to deliver a solid full year result. This is likely to put it in a position to increase its dividend, which currently provides investors with a trailing fully franked 5.9% yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

One of my favourite dividend shares on the ASX is the operator of Sydney Airport. I believe it is well-placed to grow its profits at a solid rate over the next decade thanks to increasing global tourism, its position as the main gateway into Australia, and its near-monopoly status. Overall, I believe this will allow the Sydney Airport board to continue increasing its dividend for many years to come. At present its shares offer a trailing 4.9% dividend yield.

Westpac Banking Corp (ASX: WBC)

Although it may be best to wait for Westpac's half year results next week before investing, if there are no nasty surprises in them then I think it would be a great option for income investors. The banking sector may be going through a tough time at present due to the Royal Commission and housing market downturn, but I remain confident that Westpac can still grow its underlying earnings and dividend at a modest rate over the coming years. At present its shares offer an attractive trailing fully franked 6.8% dividend.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. 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.

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