Luckily for savers and income investors in this low interest rate environment, the Australian share market is one of the most generous in the world with an average dividend yield of approximately 4%.
Whilst this yield is vastly superior to those on offer with term deposits and savings accounts, you don't have to settle for 4%.
Three shares that offer even greater yields are listed below. Here's why they could be worth snapping up this month:
Adairs Ltd (ASX: ADH)
Whilst the housing market downturn has impacted the performance of many retailers with exposure to it, I've been positively surprised by the strong performance of this home furnishings retailer in FY 2019. In the first half Adairs reported a 10.6% increase in sales to $164.4 million and a 9.1% lift in net profit after tax to $14.9 million. It also advised that second half trading started strongly, with same store sales growth of 7.1% during the first seven weeks. Last month a couple of directors topped up their holdings with sizeable share purchases, which I would interpret as a sign that things are going well. So, with its shares changing hands at 9x trailing earnings and offering a generous 8% dividend yield, I think it could be a great option for income investors.
Westpac Banking Corp (ASX: WBC)
If you don't already have exposure to the banks then it could be worth considering an investment in Westpac's shares today. Although Australia's oldest bank posted a reasonably disappointing half year result earlier this month, the strength of its balance sheet allowed the Westpac board to maintain its interim dividend at 94 cents per share fully franked. Although you're too late for this dividend, I remain optimistic that the bank will be able to grow its earnings at a modest rate in the coming years and maintain its dividend. If it does achieve this, its shares will provide a generous 7% dividend yield. As well as Westpac, I think Australia and New Zealand Banking Group (ASX: ANZ) and its trailing full franked 6.1% dividend yield could be worth considering.
