The Motley Fool

Why I would buy Sydney Airport and these ASX dividend shares

If you’re an income investor then you’re in luck because the Australian share market is home to a large number of quality dividend shares.

Three that I would buy right now are listed below. Here’s why I like them:

Aventus Retail Property Fund (ASX: AVN)

Aventus is a fully integrated owner, manager, and developer of retail parks across Australia. It counts many of the biggest retailers in the country as tenants, which I believe lowers the risk of defaults and closures. In the first half of FY 2019 the property fund achieved an occupancy rate of 98.5%, with 16 of its 20 centres boasting 100% occupancy. The combination of its high occupancy rate and a 3.3% increase in like for like net property income growth led to Aventus posting a profit of $64 million and declaring a distribution of 8.2 cents per unit in the first half. This means its units currently provide a trailing 7.25% distribution yield.

Dicker Data Ltd (ASX: DDR)

Dicker Data is Australia’s largest and longest established Australian-owned distributor of information technology products. I’ve been very impressed at the way the company has performed over the last couple of years and was pleased to see this strong form has continued in FY 2019. On Wednesday the company released its first quarter update and revealed a 21.1% increase in revenue to $386.9 million and a 46.7% lift in profit before tax to $13.5 million. Whilst I expect its profit growth to moderate as the year goes on, I believe another strong full year result is inevitable. At present its shares provide a fully franked forward 4.9% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

I think the operator of the country’s busiest airport is well-positioned to benefit from the growing number of tourists traveling to and from Australia thanks to the global tourism boom. I expect this to lead to increasing demand for parking, stores and restaurants, and passenger fees. All in all, this should allow Sydney Airport to continue growing its dividend at a solid rate for many years to come. The airport operator’s shares currently offer a trailing 5% dividend yield.

And here is a fourth dividend share which has been rated as a buy and tipped as the best one to buy on the ASX.

Here it is... Our #1 Dividend Share Pick for 2019

For a brief time, The Motley Fool Australia is giving away some of its most valuable research of the entire year. Simply by clicking the link below, you’re invited to discover our #1 absolute favourite dividend share to potentially profit inside the next 12 months (and beyond).

HINT: This is an ‘under the radar’ company boasting in a mouth-watering combo of GROWTH potential and FULLY FRANKED DIVIDENDS. Yet chances are you don’t know the name or the code. And perhaps you’d like to peek at our full investment analysis too, including all the reasons we expect this company to soar in 2019?

To get your access before it’s too late, simply click below now. Your copy is free, but this valuable report will NOT be available forever...


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 Sydney Airport Holdings Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more