The Australian share market is home to a large number of shares offering generous dividend yields. Which certainly is a blessing given how low interest rates have gone this year.
Three of my favourites for income investors right now are listed below. Here’s why I like them:
National Storage REIT (ASX: NSR)
One dividend share I would consider buying is National Storage. Through its network of 168 storage centres, National Storage provides tailored storage solutions to over 60,000 residential and commercial customers. Pleasingly, despite its size, management continues to see room to grow through a combination of acquisitions and developments. I expect this to underpin solid distribution growth over the next decade. At present the company’s shares provide a 5% trailing distribution yield.
Stockland Corporation Ltd (ASX: SGP)
The Stockland share price may have hit a 52-week high this week, but it still provides a very generous distribution yield. Based on its last close price, the diversified Australian property company offers a trailing 5.4% distribution yield. I think this is very attractive in this low interest rate environment. Especially given Stockland’s positive start to FY 2020. This could put it in a position to deliver modest income and distribution growth this year.
Telstra Corporation Ltd (ASX: TLS)
Although they have been on fire this week, I still think Telstra’s shares are good value. Especially considering the early success of its T22 strategy, the return of rational competition, and the arrival of 5G. Another positive is that the end of the nbn rollout is now in sight. Once this earnings headwind is out of the way, I am confident that Telstra will return to growth again. In the meantime, though, I believe its current free cash flows are more than sufficient to maintain its current dividend. As a result, I estimate that its shares offer a forward fully franked 4.1% dividend.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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 February 15th 2021
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 National Storage REIT. 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.
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