Why I would buy this ASX banking share and these high yield dividend stars

I think the Australia and New Zealand Banking Group (ASX:ANZ) dividend is a great option for income seekers in this low interest rate environment…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There's no escaping the fact that interest rates are extremely low and could go lower.

Luckily for those in search of a passive income, the Australian share market is home to a large number of shares offering generous dividend yields.

Three top dividend shares that I would buy this week are listed below. Here's why I like them:

Australia and New Zealand Banking Group (ASX: ANZ

I think ANZ would be a great option for income investors. Especially with the Royal Commission out of the way, the housing market tipped to rebound in 2020, and tax cuts likely to increase consumer confidence. I believe there's a strong chance that this will to lead to solid mortgage loan system growth in the medium term, which should give ANZ's profits a big boost. In addition to this, I think it is the pick of the sector due to its current valuation, above-average dividend yield, cost-cutting opportunities, and share buybacks. ANZ's shares currently offer a trailing fully franked 5.85% dividend yield.

Scentre Group (ASX: SCG)

Scentre Group is the owner and operator of all the Westfield buildings in the Australia and New Zealand market. I'm a big fan of the company due to the quality of its portfolio. At present the company boasts 7 of the top 10 retail centres in Australia and 4 of the top 5 centres in New Zealand. Another big positive is its high occupancy rate. At its last update the company revealed that it had an occupancy rate of 99.3%. I expect this strong demand for its properties to support solid FFO and distribution growth over the medium term. This year the company intends to increase its distribution to 22.6 cents per security, which equates to a 5.8% yield.

Super Retail Group Ltd (ASX: SUL)

Another dividend share to consider buying is Super Retail Group. It is the company behind automotive retailer Supercheap Auto, sports store Rebel, and adventure retailers BCF and Macpac. I've been impressed at the way the company has achieved solid profit growth in FY 2019 despite the tough retail conditions. In light of this, FY 2020 could be an even stronger year if a housing market rebound and tax cuts lead to a big improvement in consumer confidence and spending. At present its shares offer a trailing fully franked 5.2% dividend yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »