If you're on the lookout for a dividend share or two, you're in luck. The Australian share market is home to a large number of shares that offer generous dividend yields.
Three dividend shares that I think would be great options for income investors are listed below. Here's why I like them:
Lendlease Group (ASX: LLC)
Lendlease is an international property and infrastructure group which I think would be a great option. I'm a big fan of the company due to its burgeoning development pipeline which was approaching $100 billion in project value at its last update. I expect this to support solid earnings and dividend growth for the many years to come. At present I estimate that its shares offer a fully franked 3.7% forward dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Another top option for income investors to consider is Telstra. I think the telco giant is over the worst of its issues and well-placed for a return to growth in the near future. This is thanks to its T22 strategy which is simplifying its business and cutting its costs materially. Another positive is that peak pain from the NBN looks set to hit Telstra in FY 2021. When this happens the pressure on its earnings will begin to ease. For now, I continue to believe its 16 cents per share dividend is sustainable from its current free cash flows. This equates to a fully franked 4.1% dividend yield.
Westpac Banking Corp (ASX: WBC)
If you don't have exposure to the banks, then it could be worth considering an investment in Westpac's shares. Although trading conditions remain tough, I believe the recent improvement in the housing market will underpin solid mortgage loan growth in the near term. This should support its earnings and dividends in the coming years. But for now, even after factoring in a dividend cut in FY 2020, I estimate that its shares offer a generous forward fully franked 6.3% dividend yield.
