Luckily for income seekers in this low interest rate environment, the Australian share market is home to a large number of quality dividend shares.
Amongst the many options to choose from, I have picked out four which I think could be top options in 2020. They are as follows:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don't already own the big four banks, then I think it could be worth considering ANZ Bank. I like it due to the improving housing market, its attractive valuation, generous dividend yield, and strong capital position. At present ANZ's shares offer a trailing fully franked 5.9% dividend yield.
BHP Group Ltd (ASX: BHP)
I think BHP would be a great option for investors that are willing to invest in the resources sector. Whilst there are a lot of decent options in the sector, I think BHP is the best due to its world class operations. These low-cost operations are some of the best in the world and generate significant free cash flows. At present I estimate that its shares offer a fully franked forward 6.1% dividend yield.
Coles Group Ltd (ASX: COL)
Although it doesn't offer the biggest yield on the market, I still feel this supermarket operator could be a good option. Especially given its refreshed strategy and its focus on automation. These are expected to cut Coles' costs materially in the coming years, which should underpin solid earnings and dividend growth. I estimate that its shares provide a fully franked forward 3.5% dividend.
Telstra Corporation Ltd (ASX: TLS)
A final option to consider buying is Telstra. I think the telco giant is trading at a very attractive level at present, making now an opportune time for income investors to strike. Furthermore, thanks to its improved outlook, I remain confident that no further dividend cuts will be necessary. And from FY 2022, I suspect its dividend could even start to grow again. Telstra's shares offer a trailing fully franked 4.5% dividend yield today.
