It is becoming increasingly difficult for investors to generate an income from traditional interest-bearing assets.
Luckily in this low interest rate environment, the Australian share market is home to a large number of shares offering generous dividend yields.
Three dividend shares that I would buy right now are listed below:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail centres in Australia. I think it could be a good option for income investors in this low interest rate environment. This is because following a record number of leasing deals with many of Australia’s biggest retailers, Aventus is currently enjoying a very high occupancy rate. As a result, management is confident it can deliver a 3% lift in its distribution to 17.1 cents per unit in FY 2020. If its achieves this, its units will provide investors with a generous ~5.7% distribution yield.
National Storage REIT (ASX: NSR)
Another option for income investors to consider is National Storage. This leading self-storage provider has been growing its income and distribution at a solid rate over the last few years despite the housing market downturn. This has been achieved through a combination of acquisitions and developments and solid demand for its services. Pleasingly, with the housing market rebounding strongly, I expect demand for its services to increase over the coming years and underpin further distribution growth. At present I estimate that its units offer a forward distribution yield of 4.7%.
Telstra Corporation Ltd (ASX: TLS)
A final option for income investors to consider buying is Telstra. I think it is one of the best income options right now due to its attractive valuation and increasingly positive outlook. In respect to the latter, I believe the company’s T22 strategy, the NBN rollout progress, and the arrival of 5G internet means it won’t be too long before Telstra returns to sustainable growth. In the meantime, I’m confident its dividend is safe at 16 cents per share fully franked. This means that its shares currently offer investors a forward fully franked 4.2% dividend yield.
5 stocks under $5
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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 Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and 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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