3 high yield ASX dividend shares to buy right now

Here's why I think Sydney Airport Holdings Pty Ltd (ASX:SYD) and these high yield ASX dividend shares could be great options…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Luckily in this low interest rate environment, the Australian share market has a large number of shares offering attractive dividend yields.

But which dividend shares should you buy? I think the three listed below would be great options for income investors:

Aventus Group (ASX: AVN)

The first dividend share to consider buying is Aventus. This retail property company specialises in large format retail parks across Australia. Given how Aventus' rental income has a reasonably high weighting towards everyday needs, I think it well-placed to navigate the tough trading conditions facing the retail sector. This is a view I share with Goldman Sachs, which remains very positive on the company. So much so, it has forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~7.8% distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

As long as the recent spike in coronavirus cases in Victoria doesn't get out of control, I'm optimistic domestic tourism will rebound strongly over the remainder of 2020. Especially given recent reports of pent up demand for travel in Australia after months of restrictions. This could put Sydney Airport in a position to start paying a decent dividend again in FY 2021. At this point, I expect the airport operator to pay shareholders a 29 cents per share dividend next year. This represents a forward 4.9% dividend yield based on its last close price.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you don't have enough funds to maintain a truly diverse portfolio of dividend shares, then you might want to consider buying the Vanguard Australian Shares High Yield ETF. This exchange traded fund provides investors with exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the big four banks, telcos, and shares like Sydney Airport. At present I estimate that its units offer a forward dividend yield of at least 4.5%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »