Given that interest rates are at record low levels and showing little signs of improving in the near term, I think savers and income investors ought to consider the large number of Australian shares currently offering generous dividend yields.
Three that I think could be great options today are listed below. Here’s why I like them:
Lendlease Group (ASX: LLC)
This international property and infrastructure company released its full year results this week and revealed a 41% decline in profit. Whilst this was disappointing, I think its positive outlook makes its shares worth considering at current levels. Especially after Lendlease advised that it intends to sell its troubled engineering division which weighed heavily on its result and revealed a record pipeline of development projects. In addition to this, its long term outlook looks rosy thanks to a ~$20 billion project with tech giant Google. At present I estimate that its shares offer a fully franked 4% FY 2020 dividend yield.
Scentre Group (ASX: SCG)
Scentre is the owner of the Westfield properties in the ANZ region and one of my favourite dividend shares. This is because the company commands an enviable position in the retail sector. Thanks to its millions of visitors each year, Scentre Group accounts for an incredible 7.5% of all retail sales in Australia. As a result, its most recent update revealed an occupancy rate of 99.3%. I expect this to support solid income and distribution growth in FY 2020 and over the next few years. At present its units offer a 5.7% yield.
Telstra Corporation Ltd (ASX: TLS)
Last week this telco giant released its full year report and delivered a result that was in line with its guidance and market expectations thanks to the early success of its T22 strategy. If the strategy continues to be implemented as successfully in the future, then I suspect the company will be well-placed to return to growth once the nbn headwind is gone. The good news is that the company is now half way through the negative impact of the rollout, which means the end is in sight. In the meantime, I believe the company’s cash flows will be sufficient to support its current dividend. Telstra’s shares offer a fully franked 4.2% dividend yield.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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 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.