With an average dividend yield of almost 4%, the Australian share market is one of the most generous in the world. This certainly is good news for income investors in this low interest rate environment.
Three dividend shares that offer above-average yields are listed below. Here’s why I like them:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager, and developer of large format retail centres (retail parks) in the Australian market. As of its last update, it had a portfolio of 20 centres which were home to a diverse tenant base of 590 quality tenancies. National retailers represent 87% of its total portfolio. This includes major retailers such as Chemist Warehouse, The Good Guys, Officeworks, and Bunnings. Due to the solid demand for its tenancies, I feel Aventus is well-placed to deliver modest income and distribution growth over the coming years. At present, I estimate that its shares offer a forward 5.9% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
With rates set to stay at ultra low levels for some time to come, I think this bond proxy would be a great option for income investors. Bond proxies are shares that are expected to offer predictable returns over a long period of time, much like a traditional bond. I remain confident that Sydney Airport is well-placed to achieve this thanks to growing international tourism and its position as the main gateway into Australia. The airport operator’s shares currently offer a trailing 4.3% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
A final dividend share to consider buying is this telco giant. Although times have been hard for Telstra, I believe its outlook is currently the most positive it has been in years. This is due to the return of rational competition, the NBN rollout progress, and its T22 strategy. The latter is stripping out significant costs, putting Telstra in a position to return to growth in the not so distant future. In the meantime, I believe its 16 cents per share fully franked dividend is sustainable from its current cash flows. This equates to a fully franked 4.3% dividend yield.
And here are three more dividend shares that are growing their fully franked dividends at a decent pace.
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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 Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.