Due to the ultra-low 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)
One of my favourite dividend shares on the ASX is this wholesale distributor of computer hardware and software. Although its shares have been on a tear this year following another impressive full year result, I don’t believe it is too late to make an investment. Especially with management confident of further strong growth again in FY 2019. At present its shares offer investors a forward fully franked dividend yield of approximately 5.4%, which is paid in quarterly instalments.
National Storage REIT (ASX: NSR)
Another top dividend share to consider is this self-storage operator. Due to the resilience of its business and focus on driving increased income from multiple revenue streams, National Storage posted a 17.4% increase in underlying earnings to $26.3 million in the first half of FY 2019. Pleasingly, management appears confident in its outlook and sees plenty of room for growth in a highly-fragmented storage 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.
Rural Funds Group (ASX: RFF)
A third and final dividend share to consider is Rural Funds. It is an agriculture-focused real estate property trust which I believe is well-positioned to grow its distribution at a solid rate over the next decade. This is due largely to the quality of its portfolio, long term leases, and use of rental indexation. In addition to this, the company has opportunities to accelerate its growth through acquisitions. At present its units offer income investors a 4.8% forward distribution 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 and RURALFUNDS STAPLED. 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.