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Why I would buy ANZ and these quality ASX dividend shares in September

With an average dividend yield of approximately 3.9%, the Australian share market is one of the most income-friendly markets in the world.

This certainly is a big positive given the low interest rate environment that we are living in today.

Amongst the good number of options that income investors have, three of my favourites are listed below. Here’s why I would buy them:

Australia and New Zealand Banking Group (ASX: ANZ)

My favourite option in the banking sector right now is ANZ. I think it would be a great option for investors due to its attractive valuation, overweight exposure to business lending, and its generous yield. Based on its last close price, the banking giant’s shares currently offer investors a trailing fully franked 6% dividend yield. This is notably higher than the market average and appears reasonably secure thanks to its strong capital position. Another bonus is that a housing market rebound looks to be on the horizon. This could mean demand for mortgages grows strongly in the coming years, supporting its earnings and potentially putting it in a position to grow its dividend.

National Storage REIT (ASX: NSR)

National Storage is a self-storage provider. It is one of the largest in the ANZ market with a total of 164 centres. It has been a solid performer in recent years thanks to increasing demand for storage services, development projects, and its highly successful growth through acquisition strategy. I remain confident that there will be more of the same in the coming years, which leaves it well-positioned to continue growing its income and distribution at a solid rate for some time to come. At present its shares offer a forward yield of around 5.2%.

Transurban Group (ASX: TCL)

A final dividend share to consider buying this month is this toll road giant. Whilst its shares are looking reasonably expensive, I still think it could be a great long-term 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, which equates to a forward 4.15% 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 Transurban Group. The Motley Fool Australia has recommended National Storage REIT. 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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