With interest rates likely to crash to new lows next year, I think now would be a good time for income investors to think about how they plan to generate sufficient income in 2020.
Five top dividend shares that I think would be great options for investors next year are listed below. Here’s why I rate them as buys:
Macquarie Group Ltd (ASX: MQG)
If you’re not keen on the big four banks then I think Macquarie could be a good way to gain exposure to the banking sector. Especially with its shares down almost 14% from their 52-week high. This means its shares currently offer a partially franked dividend yield of 4.8%.
National Storage REIT (ASX: NSR)
National Storage is one of the largest self-storage providers in the ANZ market with a total of 164 centres. Thanks to a combination of increasing demand, development projects, and its growth through acquisition strategy, I believe it is well-placed to grow its distribution over the coming years. At present its shares offer a forward yield of around 6%.
Scentre Group (ASX: SCG)
Scentre Group is the company that owns all the Westfield properties in the ANZ region. Due to the quality of these assets and the strong demand it has for tenancies, I believe the company is well-placed to grow its distribution at a steady rate over the next few years. At present its units offer a trailing 5.6% distribution yield.
Super Retail Group Ltd (ASX: SUL)
Super Retail is the retail group behind brands including Rebel and Super Cheap Auto. It overcome tough trading conditions in FY 2019 to deliver a 7% increase in profit. This allowed the company to increase its dividend to 50 cents per share fully franked. Which equates to a 5.5% dividend yield.
Transurban Group (ASX: TCL)
This toll road giant could be a great option for income investors due to the quality of its assets, its strong pricing power, and long track record of distribution increases. In FY 2020 the company intends to increase its distribution by 5.1% to 62 cents per security. This equates to a forward 4.2% forward yield.
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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 Macquarie Group Limited and Transurban Group. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended National Storage REIT and 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.