If you’re searching for a source of income in this low interest rate environment, then I would suggest you check out the many quality dividend shares the ASX has to offer.
Three of my favourites right now are listed below. Here’s why I think they are great options for income investors:
Stockland Corporation Ltd (ASX: SGP)
I think that this Australian property company would be a good option for income investors. It owns, manages and develops a diverse range of assets such as retail centres, residential properties, and retirement communities. After a strong performance in FY 2019, Stockland has continued its positive form in the new financial year and looks well-placed for modest growth. I estimate that its shares offer a generous forward 5.8% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another good option for income investors could be Sydney Airport. I think it is one of the best dividend shares on the local market thanks to the quality of its business and positive outlook. As Australia’s busiest airport and the main gateway into the country, it looks well-placed to benefit from the growing number of international visitors. Combined with a recovery in domestic tourism, I believe it can continue growing its dividend for a long time to come. At present Sydney Airport’s shares offer a trailing 4.35% dividend yield.
Transurban Group (ASX: TCL)
A final dividend share to consider is Transurban. This leading toll road operator owns a number of important roads across Australia and North America. Due to how integral these roads are for commuters and businesses and their strong pricing power, I believe Transurban is well-placed to increase its distribution at a solid rate over the next decade. Especially in combination with development projects and potential acquisition. In FY 2020 the company intends to increase its distribution to 62 cents per security. This equates to a forward 4.1% distribution yield.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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 and Transurban 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.