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Why I would buy Westpac and these ASX dividend shares

Westpac share price
Credit: Perry Carbonell

If you’re on the lookout for income options on the Australian share market, then you’re in luck.

Right now there are a large number of dividend shares offering generous yields in this low interest rate environment.

Three dividend shares that I would consider buying this week are listed below. Here’s why I like them:

Stockland Corporation Ltd (ASX: SGP)

I think this diversified property company could be worth considering. Stockland is a developer and manager of properties including retirement villages, housing estates, and shopping centres. Although the company admittedly had a softer than expected first half to FY 2020, management appears confident that its earnings will be skewed to the second half. In light of this, it declared an interim distribution of 13.5 cents per share and reaffirmed its plan to pay a 27.6 cents per share full year distribution. This is the equivalent of a 5.3% yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Once the coronavirus situation eases, I think it would be worth picking up the shares of this airport operator. As the main gateway into Australia, I believe Sydney Airport is well-placed for growth over the next decade as tourism grows and more and more passengers pass through its gates. Another positive is its growing ancillary revenues which are supporting the growth of its core business. A recent pullback in its share price means that Sydney Airport’s shares now offer an estimated forward 4.8% dividend yield.

Westpac Banking Corp (ASX: WBC) 

A final dividend share to consider buying right now is Westpac. Its share price has fallen heavily over the last few months following its AML breaches. Whilst this is disappointing for shareholders, I believe it has created a buying opportunity for non-shareholders. Overall, I feel its shares offer a positive risk/reward for income investors that don’t already have meaningful exposure to the banking sector. I estimate that they currently offer a fully franked forward 6.1% dividend yield.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings 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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