With the cash rate at a record low and likely to go even lower next week, I think income investors should consider looking beyond term deposits and savings accounts to the high quality dividend shares on offer on the ASX.
Three top dividend shares that I would buy this week are listed below:
Aventus Group (ASX: AVN)
Aventus Group is a fully integrated owner, manager, and developer of large format retail centres. As of its last update, the property fund owned a total of 20 retail parks across Australia. Demand for its properties from some of the biggest retailers in the country has been strong, leading to the company recently reporting a 98.5% occupancy rate. In fact, 16 out of its 20 properties are enjoying 100% occupancy rates. Given the recent election result, things are looking good for the retail sector and the housing market. I think this bodes well for Aventus and believe it is well-positioned to continue growing its property income and distribution for the foreseeable future. Its units currently provide a trailing 7.25% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Although this telco giant’s shares have recently hit a 52-week high, I don’t think it is too late to invest. This is because I believe Telstra is well-placed to grow its underlying earnings at a modest rate over the next few years thanks to cost-cutting opportunities, the launch of 5G, improving mobile average revenue per user (ARPU), and the ACCC’s decision to block the merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Australia. I expect the company to pay a full-year dividend of 16 cents per share this year and in FY20, which equates to a fully franked 4.5% dividend yield.
Westpac Banking Corp (ASX: WBC)
Due to its attractive valuation, generous yield, the favourable election result, and the improved outlook for the housing market, I think now could be a good time to consider an investment in this banking giant’s shares if you don’t already have meaningful exposure to the sector. At present, Westpac’s shares offer a trailing fully franked 6.7% dividend yield, which is significantly higher than the market average of ~4%.
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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 Telstra 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.