The Motley Fool

Transurban and these ASX dividend shares could be perfect for income investors

There sure are a lot of quality options for investors to choose from when it comes to dividend shares. Which certainly is a relief given the low interest rate environment that we are living in.

Three dividend shares that I think are in the buy zone now for income investors are listed below. Here’s why I like them:

Aventus Group (ASX: AVN)

Aventus is a leading owner and operator of large format retail parks across Australia. Last month it released its full year results and revealed funds from operations (FFO) of $96 million or 18.4 cents per security. This compares to $89 million and 18.1 cents per security in the prior corresponding period. One of the drivers of this solid result was its high occupancy rate, which supported solid like-for-like net operating income growth of 3.5%. Pleasingly, management expects FFO per security growth of 3% to 4% in FY 2020. Based on this and its typical pay out ratio, I forecast a distribution of 17.25 cents per unit. This equates to a forward 6.3% distribution yield.

Lendlease Group (ASX: LLC) 

Lendlease is an international property and infrastructure company which I think could be a good option for income investors. Although FY 2019 was a very disappointing year, I remain confident that Lendlease has moved on from this and is well-placed for growth again. Especially given its ~$20 billion multi-year project with tech giant Google in the United States. At present I estimate that its shares offer a fully franked 4% FY 2020 dividend yield.

Transurban Group (ASX: TCL)

Transurban continues to be one of my favourite dividend shares on the Australian share market. This is due to the toll road giant’s long track record of dividend increases, the quality of its operations, and its solid growth potential. Management appears confident in the latter and revealed that it intends to increase its distribution by 5.1% to 62 cents per security in FY 2020. This equates to a forward 4.2% forward yield.

NEW! Best 3 Dividend Buys for 2020

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

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 AVENTUS RE UNIT. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!