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20 top ASX dividend shares to buy for 2020

Last week the Reserve Bank of Australia cut the cash rate down to a record low of 0.75%.

Unfortunately for savers and income investors, it looks likely that the central bank will take rates down another notch in the coming months.

But don’t worry because the Australian share market is home to a large number of dividend shares that can help you beat low rates in 2020.

Here are 20 top dividend shares to look closer at:

Accent Group Ltd (ASX: AX1)

Accent is the footwear-focused retailer behind brands such as HYPE DC and Platypus. After a strong performance in FY 2019, I believe it is well-positioned for further growth this year thanks to its growth plans and margin expansion. Based on this, I estimate that its shares offer a forward fully franked 5% dividend yield.

Australia and New Zealand Banking Group (ASX: ANZ)

Whilst there are a lot of options in the banking sector, my favourite is ANZ. This is due to its attractive valuation, generous dividend yield, and strong capital position. At present ANZ’s shares offer a trailing fully franked 5.9% dividend yield.

Aventus Group (ASX: AVN)

Aventus is a leading owner and operator of large format retail parks across Australia. Thanks to the popularity of this format with consumers, Aventus continues to enjoy a sky-high occupancy rate and looks well-placed for solid FFO growth in FY 2020. I estimate that its shares offer a forward 6.3% distribution yield.

BHP Group Ltd (ASX: BHP)

Due to the quality of its global operations and the high levels of free cash flow they are generating, I think BHP would be a great option for income investors. Especially with management likely to return the majority of its free cash flow to shareholders. I estimate that its shares currently provide a fully franked forward 6% dividend yield.

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which generates the majority of its income as the landlord of hardware giant Bunnings. Given the quality of its tenants and periodic rental increases, I believe it is well-placed to grow its dividend over the coming years. At present its shares provide a trailing 3.6% distribution.

Coles Group Ltd (ASX: COL)

Due to its refreshed strategy and its focus on automation, I believe this supermarket could be a great buy and hold option for income investors. Currently I estimate that its shares provide a fully franked forward 3.5% dividend.

Lendlease Group (ASX: LLC) 

Another good option for buy and hold investors could be Lendlease. Thanks partly to its ~$20 billion multi-year project with tech giant Google in the United States, I believe it is well-positioned to grow its dividend at a solid rate over the next decade. Presently, I estimate that its shares offer a fully franked 4% FY 2020 dividend yield.

Macquarie Group Ltd (ASX: MQG)

If you’re not a fan of the big four banks then Macquarie could be a good alternative. I think it is one of the highest quality investment banks in the world and has outstanding long term growth potential. At present its shares offer a forward 4.5% partially franked dividend yield.

National Australia Bank Ltd (ASX: NAB)

But if you are willing to invest in the big four then I think NAB would be worth considering along with ANZ. Especially given how the housing market looks set to rebound in 2020. This could drive solid mortgage loan growth and support its bottom line. I estimate that its share offer a 6% fully franked dividend yield.

National Storage REIT (ASX: NSR)

National Storage is a self-storage-focused real estate investment trust which owns a network of 168 centres throughout the ANZ region. It looks well-placed for growth thanks to development projects and its growth through acquisition strategy. At present its shares provide a 5.3% trailing distribution yield.

Qantas Airways Limited (ASX: QAN)

Thanks to its cost reductions, fuel hedging, and excellent capacity management, I believe this airline could have a very strong year in FY 2020. This could result in the company returning funds to shareholders through buybacks and special dividends. But outside that, I expect its shares to provide a fully franked forward 4.3% dividend in 2020.

Rio Tinto Limited (ASX: RIO)

Another option in the mining sector for income investors to consider is Rio Tinto. I estimate that its shares offer a fully franked forward 4.6% dividend yield, excluding any potential special dividends that might be announced if iron ore price remain at high levels.

Scentre Group (ASX: SCG)

Scentre is the owner of Westfield properties in the ANZ region and appears well-positioned for growth thanks to the robust demand for its tenancies and the increasing number of consumers that visit its centres. At present its units offer a trailing 5.7% distribution yield.

Stockland Corporation Ltd (ASX: SGP)

Another option is this diversified Australian property company. It owns, manages and develops retail centres, workplace and logistics assets, residential and retirement communities. This year the market is forecasting a small increase in its distribution to 27.8 cents per unit, which works out to be a forward 6.2% distribution yield.

Super Retail Group Ltd (ASX: SUL)

One of my favourite options in the retail sector is Super Retail. It is the company behind brands such as Super Cheap Auto, Macpac, and Rebel. It performed strongly in FY 2019 despite tough trading conditions and looks well-placed to do the same this year thanks to tax cuts and a potential housing market rebound. I estimate that its shares offer a forward fully franked 5.4% dividend.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

As the main gateway into Australia, Sydney Airport looks set to benefit from increasing international tourism and a potential recovery in domestic tourism in 2020. At present Sydney Airport’s shares offer a generous trailing 4.8% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

This telco giant’s shares currently offer a trailing fully franked 4.7% dividend. I think this makes it a top choice, especially given its improved outlook now that the end of the NBN rollout is in sight. Furthermore, rational competition and the arrival of 5G should be a boost to its future growth.

Transurban Group (ASX: TCL)

This toll road giant is one of my favourite dividend shares due to the quality of its assets, their strong pricing power, increasing traffic, and recent acquisitions and developments. This year management plans to increase its distribution to 62 cents per security, which equates to a forward 4.25% forward yield.

VanEck Vectors Australian Banks ETF (ASX: MVB)

If you’re not sure which banks to buy then you might want to consider this ETF. Rather than choosing a bank to invest in, this ETF gives investors the option of owning all the big four banks, the regionals, and Macquarie. It also provides a 5.4% partially franked dividend.

Wesfarmers Ltd (ASX: WES)

I think Wesfarmers could be a good option for income investors now that the housing market is improving. This could mean demand for home improvement and household goods is about to increase, which bodes well for its Bunnings, Kmart, and Target businesses. Wesfarmers’ shares provide an estimated forward 3.9% fully franked dividend.

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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, Sydney Airport Holdings Limited, Telstra Limited, Transurban Group, and Wesfarmers Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Accent Group, AVENTUS RE UNIT, 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.

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