Fortunately in this low interest rate environment, the ASX 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 top options for income investors right now:
Aventus Group (ASX: AVN)
The first dividend share to consider buying is Aventus. It is a retail property company which specialises in large format retail parks across Australia. Retail property is generally not a good place to be right now, however Aventus is different to a company like Scentre Group (ASX: SCG). This is because its retail parks have a relatively high weighting towards everyday needs, where trading has remained strong during the pandemic. This appears to have left the company well-placed to navigate the tough trading conditions facing the retail sector right now. Goldman Sachs certainly believes this will be the case and is forecasting a ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a massive forward ~8.4% distribution yield.
Dicker Data Ltd (ASX: DDR)
Another dividend share to consider buying is this wholesale distributor of computer hardware and software. Dicker Data has been a strong performer in FY 2020 and reported stellar growth during its recently completed first half. The good news is that I believe this solid form can continue for the foreseeable future thanks to the robust demand it is experiencing, new vendor agreements, and the benefits of scale. In FY 2020 the company intends to pay a 35.5 cents per share dividend. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Finally, if you don’t have the funds available 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 gives investors exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the big four banks, telcos, and mining giants. At present, I estimate that its units offer a forward dividend yield of at least ~4%.