Although economic data has been improving, I don't believe it is enough to stop the Reserve Bank of Australia taking rates lower again in 2020.
So, with savers facing yet another year of record low rates, I believe those in search of income should consider one of a number of high-quality dividend shares on the ASX.
Here are 10 dividend shares I would buy in 2020:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail centres in Australia. It currently owns a portfolio of 20 centres valued at $2.1 billion. Through this portfolio it has a diverse tenant base of 590 quality tenancies, with national retailers representing 87% of its total portfolio. I estimate that its shares offer a forward 6% distribution yield.
Accent Group Ltd (ASX: AX1)
Accent Group is the footwear-focused retail group behind chains such as Athlete's Foot, HYPE DC, and Platypus. It also owns the exclusive rights to a number of popular global footwear brands in the Australian market. It has been performing very strongly in recent years and looks well-placed for FY 2020. As a result, I estimate that its shares offer a forward fully franked 4.7% dividend yield.
BHP Group Ltd (ASX: BHP)
Due to its world class and low cost operations that are generating significant levels of free cash flow, I expect FY 2020 to be another year filled with generous dividends. Especially now the trade war with the United States and China appears to have been averted. This should support demand for key commodities and ultimately their prices. I estimate that BHP's shares provide a fully franked forward 5.5% dividend yield.
Coles Group Ltd (ASX: COL)
Due to its refreshed strategy and its focus on automation, I think this supermarket operator is a dividend share to buy. This strategy is expected to cut its costs significantly over the coming years and improve margins. Combined with solid sales growth, this should lead to robust earnings and dividend growth. I estimate that its shares currently provide a fully franked forward 3.5% dividend.
National Australia Bank Ltd (ASX: NAB)
If you're not invested in the banks already then NAB could be worth considering for 2020. Especially given how the housing market is improving. This could drive solid mortgage loan growth and support NAB's bottom line and dividends. Its overweight exposure to business banking is another positive. And due to a recent pullback, I estimate that its shares offer a very generous forward fully franked 6.5% dividend yield.
Scentre Group (ASX: SCG)
Scentre Group is the owner of Westfield properties in the ANZ region. These are arguably some of the best retail assets in the region and, with hundreds of millions of annual visitors, will always be in demand with retailers. As a result, I feel its distribution can continue growing at a modest rate long into the future. At present its units offer a 5.7% distribution yield.
Stockland Corporation Ltd (ASX: SGP)
Stockland is a property group which owns, manages and develops a diverse range of assets such as retail centres and residential properties. It was a solid performer in FY 2019 and has continued its positive form in the new financial year. I estimate that its shares offer a generous forward 5.7% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
As the main gateway into Australia, Sydney Airport looks set to benefit from increasing international tourism. Another positive is that domestic tourism looks to be picking up. This could put the airport in a position to grow its dividend again in 2020. At present Sydney Airport's shares offer an estimated forward 4.5% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Trading conditions for this telco giant have been very difficult over the last few years due to the arrival of the NBN. However, with the NBN rollout nearing completion and Telstra cutting costs materially, a return to growth looks close. As a result, I am confident its 16 cents per share dividend is as low as it will go and no further cuts will be necessary. This equates to a fully franked 4.3% dividend yield.
Transurban Group (ASX: TCL)
This leading toll road operator owns a portfolio of key roads across Australia and North America. With congestion on arterial roads getting worse each year, the company's toll roads continue to experience growing traffic numbers. Combined with periodic toll increases, this is leading to solid income and distribution growth. In FY 2020 Transurban plans to lift its distribution to 62 cents per security, which works out to be a forward ~4% distribution yield.
