The share market is a great place to invest in businesses and generate the income you want or need.
There are some shares that are so good that I want to buy a lot more as time goes on. Here are three of my favourite ones:
Rural Funds Group (ASX: RFF)
Rural Funds is one of Australia's fastest growing real estate investment trusts (REITs).
It purely invests in agricultural property and then leases it to quality tenants like Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV).
It owns a variety of farm types including almonds, macadamias, cattle, poultry, vineyards and cotton.
It has good rental indexation built into all of its contracts, meaning that management have been able to pencil in a 4% increase to the FY18 distribution. I also like that it owns significant water entitlements for all of its tenants to use.
Rural Funds Group is currently trading with a trailing distribution yield of 4.55%.
WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX)
Both are listed investment companies (LICs) run by Wilson Asset Management.
They both have impressive long-term histories of outperforming the market.
Both LICs have pleasingly grown their dividend every year since the GFC and should be able to for a long time to come, as long as Australia doesn't go through a recession.
I like the WAM investment style and they keep a lot of cash on hand as part of the portfolio too.
WAM Capital currently has a grossed-up dividend yield of 8.64% and WAM Research has a grossed-up yield of 7.89%.
Foolish takeaway
I think all three are really good dividend shares and I will be looking to acquire more when the price is right. However, all three are currently looking quite expensive compared to their NTA, so I'll be waiting until they are cheaper before buying more.
