There are plenty of Australian dividend shares available on the ASX boards for income investors to choose from.
To narrow things down, let's look at three excellent options for income investors that have $1,000 to put to work in the share market. They are as follows:
Macquarie Group Ltd (ASX: MQG)
The first Australian dividend share to consider buying with the $1,000 is Macquarie. It is Australia's leading investment bank with a diversified business model that spans banking, asset management, commodities, and global infrastructure. This diversity gives it multiple earnings engines that fire at different points of the cycle.
This has allowed Macquarie to weather market downturns and rate shocks better than many financial peers. After all, when one division is struggling, there is another that is typically picking up the slack. In light of this, it could be a top pick for income investors that are looking for stable dividends.
At present, Macquarie's shares trade with a trailing dividend yield of 3.5%.
Rural Funds Group (ASX: RFF)
Another Australian dividend share for income investors to look at is Rural Funds.
It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land.
It leases these properties to high-quality tenants on long agreements with periodic rental increases built in. This means that Rural Funds has great visibility on its future earnings and has been able to grow its dividend at a consistent rate for many years.
Rural Funds is expecting to reward shareholders with an 11.73 cents per share dividend in FY 2026. Based on its current share price of $2.01, this would mean an attractive 5.8% dividend yield.
Telstra Group Ltd (ASX: TLS)
Telstra is one of Australia's most reliable ASX dividend shares. As the country's telco leader, it benefits from stable cash flow generated by mobile, broadband, and network services. These are the kinds of essential services that Australians rely on every day for connectivity.
Looking ahead, the company recently released its Connected Future 30 strategy, which aims to deliver strong and sustainable long-term earnings. If management delivers on its plans, it should be supportive of dividend growth over the remainder of the decade.
In FY 2025, Telstra paid shareholders a 19 cents per share fully franked dividend. Based on its current share price of $4.88, this represents a trailing dividend yield of 3.9%.
