With an average dividend yield of approximately 4%, the Australian share market is one of the more generous markets in the world.
This certainly is a big positive for income investors considering the low interest rate environment that we're living in.
If you're on the lookout for a source of income then I would suggest you check out one of these top dividend shares:
Dicker Data Ltd (ASX: DDR)
The shares of this founder-led wholesale distributor of computer hardware and software may have just hit an all-time high, but I don't believe it is too late to invest. In fact, even after its stellar share price gain, Dicker Data's shares offer a very generous trailing fully franked 5.9% dividend yield. I think this makes it well worth considering, especially given the favourable tailwinds supporting its business in FY 2019.
National Australia Bank Ltd (ASX: NAB)
Whilst there are concerns that NAB will have to cut its dividend in order to achieve the CET1 target ratio by 2020, I remain optimistic that its overweight exposure to a strong performing business lending market has put it in a position to maintain it. If worst comes to worst and the NAB board is forced to cut it, I don't believe it will be a severe cut and would still expect a yield in or around the 7% level instead of the 7.9% yield today. Overall, I think this makes it worth picking up its shares if you don't already have meaningful exposure to the banks.
National Storage REIT (ASX: NSR)
Last week this self-storage focused real estate investment trust released its half year results and revealed a solid 13% increase in first half revenue to $72.8 million and a 22% increase in operating profit to $42.2 million. This was driven by solid demand for its services and its growth through acquisition strategy. Pleasingly, with a pipeline of 12 new development and expansion projects, I expect similarly solid growth in the second half. Overall, I believe this has positioned the company well to achieve the high end of its full year distribution guidance range of 9.6 cents to 9.9 cents per unit. If National Storage does achieve this, it would mean its shares offer a forward 5.6% yield today.
