Fortunately for income investors in this low interest rate environment, the Australian share market is home to a large number of shares offering generous dividend yields. The hardest thing can be choosing which ones to buy.
To help you with your decision I have picked out three dividend shares which I think are great options right now.
Here’s why I would buy them instead of term deposits:
Aventus Group (ASX: AVN)
Aventus is a leading owner and operator of large format retail centres across Australia. This particular retail format has proven very popular with consumers and retailers. Its centres count many of Australia’s most prominent retail brands as tenants. This has led to a very high occupancy rate, which I believe leaves it well placed for solid income growth. I estimate that its shares offer a forward 6% distribution yield.
Helloworld Travel Ltd (ASX: HLO)
This integrated travel company could be a good option for income investors. It was on form in FY 2019 and delivered solid earnings and dividend growth. Pleasingly, it has started the new financial year in a positive manner. During the first quarter total transaction value lifted 10.4% and EBITDA climbed 7.7%. And with management appearing confident on the remainder of FY 2020, this bodes well for its dividend. At present its shares offer a trailing fully franked 4.7% dividend.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
One of my favourite dividend ETFs is the Vanguard Australian Shares High Yield ETF. Through a single investment it gives investors exposure to 60 of the highest paying dividend shares on the Australian share market. This diverse group of companies include blue chips such as BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS), and Commonwealth Bank of Australia (ASX: CBA). It currently offers investors a forecast forward 5.2% dividend yield at present.
When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and Helloworld Limited. 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.