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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.

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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 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.

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