Dividend shares continue to be very popular with investors and this isn't surprising when you consider term deposits and savings accounts are offering rock bottom interest rates right now.
And with interest rates expected to remain at historical low levels for some time to come, I think dividend shares are still a great option for risk-tolerant investors who want to generate stronger returns over the medium term.
With that in mind, here are three shares that income-seeking investors might want to take a closer look at this month:
Commonwealth Bank of Australia (ASX: CBA)
The banks have been hammered over the 12 months. While this is disappointing for shareholders, I think it is a buying opportunity for non-shareholders. And although times are hard for the big four banks, the cycle will soon change. In light of this, I think now could be an opportune time to make a patient long term investment in Commonwealth Bank's shares. Especially if you're an income investor. Even after factoring in a notable cut to its dividend in FY 2021, I estimate that its shares offer a forward fully franked yield of ~6%.
Dicker Data Ltd (ASX: DDR)
Another quality option for income investors could be this leading distributor of information technology products. Dicker Data has been growing at a very strong rate over the last few years thanks to a combination of increasing demand and a growing number of vendor agreements. I believe it is well-placed to continue this trend over the coming years and feel recent share price weakness is a buying opportunity for investors. Dicker Data's shares currently offer an estimated forward 5.4% dividend yield.
Rio Tinto Limited (ASX: RIO)
If you don't mind investing in the mining sector then I think Rio Tinto would be a top option. It recently delivered a strong first quarter update which revealed that it is on track to achieve its Pilbara iron ore shipments guidance of 324Mt to 334Mt in FY 2020. It also advised that demand for high quality iron ore remains strong during the pandemic. Given the importance of iron ore for the mining giant, I feel this bodes well for its profits and dividends this year. So much so, at present I estimate that its shares offer a forward fully franked 4.5% dividend yield.
