Earlier this month the Reserve Bank of Australia met to discuss the cash rate once again. As expected, the central bank elected to keep rates on hold for yet another month.
While this is good for borrowers, it certainly isn't for savers. The good news, however, is that the local share market is home to a large number of shares that offer above-average dividend yields.
Three which I think are worth buying this month are listed below. Here's why I like them:
Adairs Ltd (ASX: ADH)
Adairs is a home furnishings retailer which I think could be a great option for income investors. After a tough 18 months the company returned to form in FY 2018 with a bang when it posted a 45.4% increase in profits to $30.6 million. The catalyst for this impressive performance was a combination of strong like for like sales, solid online sales growth, and the success of its focus on large format homemaker stores. As a result of the strong 12 months, the board elected to increase its full year dividend by 68% to 13.5 cents. This means its shares offer a trailing fully franked 5.8% dividend today.
Super Retail Group Ltd (ASX: SUL)
Super Retail is another retailer that returned to form in FY 2018. Thanks to a solid performance across its retail portfolio, Super Retail posted a 26% increase in net profit after tax to $128.3 million. This allowed the board to increase its full year dividend to 49 cents per share, equating to a fully franked 5.6% yield based on its last close price. Pleasingly, management advised that FY 2019 has started strong with each of its businesses achieving positive like for like sales year to date. This could mean another strong performance this year.
WAM Capital Limited (ASX: WAM)
This listed investment company could be another top option for income investors. It provides investors with exposure to an actively managed diversified portfolio of growth companies which it believes are undervalued. The strategy has worked so well that the WAM board has been able to increase its dividend for no less than nine consecutive years. The latest increase means its shares now offer a trailing fully franked 6% dividend today.
