The Australian share market is one of the most generous financial markets in the world when it comes to dividends.
With an average dividend yield of approximately 4%, it is vastly superior to the U.S. market which averages just 1.9% at present.
But with so much choice it can be hard to decide which dividend shares to buy.
So to help you on your way I have picked out three top shares that I think investors should consider today. They are as follows:
Accent Group Ltd (ASX: AX1)
This footwear retailer's shares may be trading within sight of their 52-week high after a strong half-year result in February, but they still provide investors with an above-average dividend yield. Based on its last close price, Accent's shares offer a trailing fully franked 4.6% dividend. I think this is a great yield and believe it has the potential to grow significantly in the future if the company's Athlete's Foot and HYPE brands continue to perform strongly.
National Australia Bank Ltd (ASX: NAB)
Recent market volatility and the Royal Commission have weighed heavily on the banking sector and National Australia Bank's shares in the last few weeks, leaving them trading close to a 52-week low. It also means that National Australia Bank's shares provide investors with a trailing 6.9% fully franked dividend. I think this could be an opportune time to snap up shares in the bank, especially considering it recently posted a solid 3% increase in quarterly cash earnings to $1,650 million. I think this has put it in a position to lift its interim dividend when it reports its half-year results in the coming months.
Telstra Corporation Ltd (ASX: TLS)
I think this telco giant's shares are trading at an extremely attractive price right now for both value and income investors. Telstra intends to pay a 22 cents per share dividend to shareholders in FY 2018 and FY 2019, after which further dividends will be dependent on the success of its investments, NBN margins, and the arrival of 5G. I'm optimistic that Telstra will at least be in a position to maintain its 22 cents per share payout, which equates to a fully franked 7.1% yield presently.
