3 high quality ASX dividends shares for income investors

Transurban Group (ASX:TCL) shares are one of three that I think income investors should buy for their dividends…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »