With interest rates at low levels and showing little signs of improving in the near term, I think income investors ought to consider the large number of Australian shares currently offering generous dividend yields.
Three that I think could be great options today are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
I think that ANZ Bank could be a great option for income investors right now following its solid full year result. Especially given the fact that its shares trade on lower than average multiples and offer a generous dividend yield. Another bonus is the fact that its shares go ex-dividend for its fully franked 80 cents per share final dividend next week. Based on its current share price, this final dividend alone equates to a yield of approximately 2.95%. Whereas on a trailing basis its shares offer an above-average 5.9% yield.
Rural Funds Group (ASX: RFF)
This agriculture-focused real estate investment trust is one of my favourite dividend shares. Rural Funds owns a diverse portfolio of properties across different states and sectors including wine, cattle, and almond production. As these properties have long leases and rental indexation mechanisms built in, it provides Rural Funds with a growing and predictable income stream to fund its distributions. In FY 2019 the Rural Funds board intends to lift its distribution to 10.43 cents per unit, which works out to be a forward yield of approximately 4.75%.
WAM Capital Limited (ASX: WAM)
If you're interested in listed investment companies then I think WAM Capital could be worth a closer look. WAM Capital's strategy of investing in undervalued growth shares has been very successful over the last few years, allowing the company to increase its dividend for nine years in a row. I expect the company to continue this run in FY 2019 and make it a decade of increases. WAM Capital's shares currently offer a trailing fully franked 6.6% yield.
