Dividend shares are in high demand right now with very low Australian interest rates.
I think the best dividend shares are the ones with decent yields and are trading at good prices. That's why I'm attracted to these three shares:
Growthpoint Properties Australia Ltd (ASX: GOZ)
Growthpoint Properties is a real estate investment trust (REIT) that owns 58 properties in the industrial and office sectors, 69% of the properties are industrial.
Its biggest three tenants in terms of passing rent are Woolworths Group Ltd (ASX: WOW), NSW police and Commonwealth Bank of Australia (ASX: CBA).
It has a 98% occupancy rate and has a forecast FY20 distribution yield of 5.5% with a weighted average lease expiry (WALE) of almost five years. It has increased its distribution each year since 2010. There's a lot to like about this REIT.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts has grown its dividend every year since 2000 and it currently has a forward grossed-up dividend yield of 3.8%.
Its share price has generally been tracking the underlying value of its assets. The recent TPG Telecom Ltd (ASX: TPM) win has boosted its Soul Patts' asset value and is likely to unlock a bigger stream of dividends to Soul Patts over the coming years.
Cross-holding investment partner Brickworks Limited (ASX: BKW) is expecting to see better conditions over the next year as the construction market returns to normal.
I think Soul Patts is one of the most dependable dividend shares on the ASX, which is why I think it's one of the best to think about.
Propel Funeral Partners Ltd (ASX: PFP)
Propel Funeral Partners is the second biggest funeral operator in Australia and New Zealand. The industry provides a defensive source of earnings, which should also translate into a defensive dividend.
There is also projected growth for the sector, death volumes are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050.
If Propel can grow its volumes and price per funeral it should mean steadily growing earnings for the company. It started paying a dividend in 2018 and increased it in 2019.
The company has a trailing grossed-up dividend yield of 4.5%.
Foolish takeaway
I think each of these dividend shares have very attractive outlooks for dividend growth. I think Soul Patts has the most defensive dividend, though both Propel and Growthpoint could be good ways to diversify your investment income.
