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 think would be good options for income investors right now are listed below. Here's why I like them:
Aventus Group (ASX: AVN)
The first dividend share to consider buying is Aventus. It is the largest fully integrated owner of large format retail parks in Australia. As of its last update, Aventus owns 20 retail centres across the country and counts many of the biggest retailers in the nation as its tenants. The popularity of its centres with consumers has led to strong demand for tenancies and supported high occupancy rates, which I feel has positioned it well for growth over the coming years. At present, I estimate that its shares offer a forward 6.2% distribution yield.
BWP Trust (ASX: BWP)
BWP is a real estate investment trust and the landlord of hardware giant Bunnings. Due to the quality of the Bunnings business, I feel the probability of store closures and rental defaults is very low. And combined with its periodic rental increases, I believe this has put BWP in a solid position to continue growing its income and distribution at a predictable rate over the next decade. At present its shares offer an estimated forward 4.8% distribution yield.
Coles Group Ltd (ASX: COL)
Another top option for income investors to consider is this supermarket giant. I'm a big fan of Coles due to its defensive qualities, cost cutting plans, its solid growth prospects thanks to its refreshed strategy, and its strong market position. Another positive for income investors is its dividend policy. The Coles board intends to return the majority of its profits to shareholders each year and has committed to a pay out ratio of 80% to 90%. Based on this, I estimate that it will pay a 57.7 cents per share dividend in FY 2020. This equates to a fully franked forward 3.8% dividend.
