Thankfully in this low interest rate environment, the Australian share market is home to a large number of shares paying generous dividends.
Three top ASX dividend shares that I think are in the buy zone right now are listed below. Here’s why I would buy them:
BWP Trust (ASX: BWP)
BWP is a real estate investment trust. It may not be a familiar name to investors, but its main tenant will be. The majority of BWP’s income comes from being the landlord of hardware giant Bunnings. Given the quality of its tenants, the improving property market, and periodic rental increases, I believe it is well-positioned to grow its dividend at a solid rate over the coming years. At present its shares provide a trailing 4.3% distribution yield.
Scentre Group (ASX: SCG)
Scentre Group is the owner of Westfield properties in the ANZ region. These properties are arguably the best retail assets in the region, recording 535 million customer visits across them over the last 12 months. In light of this, it is no surprise to learn that its tenancies are in demand from retailers. So much so, 99.3% of its portfolio was leased at the end of the September quarter. I believe this leaves Scentre Group well-placed to grow its distribution at a modest rate for many years to come. At present its units offer a trailing 5.6% distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Although times have been hard for Telstra and its telco rivals, I remain confident that a return to the good times isn’t too far away. This is due to the end of the NBN rollout being in sight, the arrival of 5G, and the return of rational competition. Furthermore, with Telstra aiming to cut its costs materially over the next couple of years, I believe its dividend is now at a sustainable level. This could make it worth income investors considering its shares for their trailing fully franked 4.6% 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 Telstra Limited. The Motley Fool Australia has recommended 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.