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Beat the cash rate cuts with these top ASX dividend shares

The recent cash rate cuts and the Reserve Bank of Australia’s increasingly dovish outlook may be bad news for income investors, but the good news is that the Australian share market has plenty of quality options to solve your income needs.

Three top dividend shares that I would buy this week are listed below:

Scentre Group (ASX: SCG)

Scentre Group is the owner of all the Westfield buildings in Australia and New Zealand. Amongst its network are 7 of the top 10 centres in Australia and 4 of the top 5 centres in New Zealand. Such is the popularity of its centres, they currently generate approximately 7.5% of all retail sales in the region. It will come as no surprise to learn that this has led to Scentre Group enjoying a sky-high occupancy rate of 99.3% and increasing customer visits in the first quarter. I believe this has positioned it well to deliver on its plan to pay a 22.6 cents per security distribution this year, which currently equates to a 5.5% yield.

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company responsible for automotive retailer Supercheap Auto, sports store Rebel, and adventure retailers BCF and Macpac. In the first half of FY 2019 the retail group posted an 8.9% increase in normalised NPAT to $81.6 million thanks to solid sales growth and improving margins. Whilst the second half is likely to be a touch softer, I’m optimistic that the company will build on this in FY 2020 thanks to improving consumer sentiment due to tax cuts and the potential rebound in the housing market. This could support dividend increases in August and next year. At present its shares offer a trailing fully franked 5.5% dividend yield.

Transurban Group (ASX: TCL)

Transurban is one of the world’s largest toll road operators with a network of roads across the east coast of Australia and in North America. Increasing car volumes, expansion projects, acquisitions, and toll road price increases have underpinned the company’s solid growth over the last decade. The good news is that I feel Transurban is well-placed to do the same over the next decade. Especially with a number of key projects under development. These include new tunnels at WestConnex, the West Gate Tunnel Project, and several extensions in North America. At present Transurban’s shares offer a trailing distribution yield of 3.9%.

NEW! Expert Names 3 Top Dividend Picks for FY 2020

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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 Transurban Group. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended Scentre Group. 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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