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Why I would buy these high quality ASX dividend shares next week

With the interest rates on offer with term deposits struggling to keep up with inflation, I think income investors ought to look to the share market for a passive income.

After all, the Australian share market has an average dividend yield of ~4%. This is vastly superior to anything you’ll get from a term deposit right now.

But which shares should you buy? Here are three options to consider:

Macquarie Group Ltd (ASX: MQG)

If you’re keen on getting exposure to banking but aren’t a fan of the big four, then Macquarie could be a great alternative. I continue to believe it is one of the highest quality companies in the country and a great long term option for investors. This is because of the quality and diversity of its operations and its talented management team. Overall, I believe these leave it well-positioned to deliver solid earnings and dividend growth over the next decade. At present Macquarie’s shares offer a partially franked trailing dividend yield of approximately 4.4%.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another option to consider is Sydney Airport. This airport operator welcomed 21.6 million passengers through its gates during the first half of FY 2019. Although this was a slight decline on the same period a year earlier, it was still able to achieve a 3.4% increase in revenue. So with domestic passenger numbers improving since the election and international tourism remaining strong, I believe it is well-placed for growth in the coming years. This year Sydney Airport intends to pay a 39 cents per share dividend, which equates to a 4.25% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final dividend option to consider as an alternative to term deposits is the Vanguard Australian Shares High Yield ETF. Instead of investing in a single dividend share, this ETF gives investors exposure to a large and diverse group of shares that offer above-average dividend yields. Amongst the 60 shares included in the ETF are the likes of mining giant BHP Group Ltd (ASX: BHP) and telco company Telstra Corporation Ltd (ASX: TLS). Its units currently provide investors with a 5.3% dividend yield.

And here are three dividend shares that income expert Edward Vesely has just rated as buys.

Top 3 Dividend Shares To Buy For 2020

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.

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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 Macquarie Group Limited, Sydney Airport Holdings Limited, and Telstra 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.

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