Dividend shares continue to be very popular with investors and this isn't surprising when you consider term deposits and savings accounts are offering rock bottom interest rates right now.
And with interest rates expected to remain at historical low levels for some time to come, I think dividend shares are still a great option for risk-tolerant investors who want to generate stronger returns over the medium term.
With that in mind, here are three shares that income-seeking investors might want to take a closer look at this month:
Coles Group Ltd (ASX: COL)
I think that this supermarket giant would be a great option for income investors due to its defensive qualities, positive long-term outlook, and favourable dividend policy which will see it pay out 80% to 90% of its earnings to shareholders. And if the company's focus on reducing costs materially through the use of automation is a success, I suspect that its dividends could grow at a solid rate over the next decade. I estimate that Coles' shares currently provide a forward fully franked 4% dividend yield.
Dicker Data Ltd (ASX: DDR)
Another quality option for income investors could be this leading distributor of information technology products. Dicker Data has been growing its earnings and dividend at a very strong rate over the last few years thanks to a combination of increasing demand and a growing number of vendor agreements. I believe it is well-placed to continue this trend over the coming years, especially given the recent launch of the Dicker Data Financial Services business. This was launched to help address the services market shift from IT procurement to as-a-service models. Dicker Data's shares currently offer an estimated forward 4% dividend yield.
Scentre Group (ASX: SCG)
A final option for income investors to consider is this owner of Westfield properties in the ANZ region. In Australia it owns seven of the top ten shopping centres and in New Zealand it owns four of the top five centres. These properties attract hundreds of millions of visits each year, which unsurprisingly has led to strong demand for tenancies from retailers. In light of this, at its last update the company reported an occupancy rate of 99.3%. 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 5.6% yield.
