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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.

5 stocks under $5

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*Extreme Opportunities returns as of June 5th 2020

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.

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