Luckily for income investors in this low interest rate environment, the Australian share market is home to a large number of quality dividend shares.
Three that I think are in the buy zone today are listed below. Here’s why I believe they are top options right now:
BHP Group Ltd (ASX: BHP)
I think investing in the resources sector can be a great way to diversify your portfolio. And what better way to do it than one of the world’s highest quality miners. Another reason to choose BHP is the high levels of free cash flow that its world class operations are generating. I expect management to return the majority of this to shareholders in the form of dividends and buybacks. In light of this, I estimate that BHP’s shares currently provide a fully franked forward 6.2% dividend yield.
National Storage REIT (ASX: NSR)
Another top option for income investors to consider is National Storage. It is one of the region’s largest self-storage operators with a total of 168 centres in the ANZ market. Through this network the company provides tailored storage solutions to over 60,000 residential and commercial customers. Despite its size, the company continues to see plenty of room to grow through acquisitions and developments. I believe this should underpin solid distribution growth over the next decade. At present the company’s shares provide a 5.2% trailing distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A final option for income investors to consider is Sydney Airport. I like airport operator due to its strong market position, pricing power, and long track record of dividend increases. Pleasingly, I believe it is well-positioned to continue this positive trend thanks to increasing international tourism, its position as the main gateway into Australia, and improving domestic tourism. At present Sydney Airport’s shares offer a trailing 4.7% dividend yield.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*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 Sydney Airport Holdings Limited. 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.
- Why Galaxy, Platinum, Sezzle, & Treasury Wine shares are storming higher – July 13, 2020 1:10pm
- ASX 200 jumps 0.8%: Big four banks storm higher, TechnologyOne sinks – July 13, 2020 12:05pm
- Why Domain, OceanaGold, Praemium, & TechnologyOne are tumbling lower – July 13, 2020 11:39am