Luckily for savers in this low interest rate environment, the Australian share market is home to a large number of dividend shares with very generous yields.
Three which I think are great options for income investors right now are listed below. Here's why I would buy them:
Australia and New Zealand Banking Group (ASX: ANZ)
This banking giant's shares have risen strongly in 2019 but still offer a generous trailing fully franked 6% dividend yield. I think this makes it a great option for income investors that have little to no exposure to the banking sector at present. And while all big four banks offer above-average yields, ANZ remains my favourite due to its strong capital position and overweight exposure to a solid performing commercial lending market.
Rural Funds Group (ASX: RFF)
One of my favourite dividend shares on the ASX is this real estate property trust which has a focus on rural assets. At the end of the first half the trust owned a total of 49 properties across six agricultural sectors and multiple climactic zones throughout Australia. It also had a weighted average lease expiry of 11.4 years, which I believe provides a lot of certainty for its future cash flows and ultimately its dividend. This year the trust intends to pay a total distribution of 10.85 cents per unit, which equates to a yield of 4.8%.
Super Retail Group Ltd (ASX: SUL)
If you're willing to invest in the retail sector then I think Super Retail would be a great option. Especially considering the way the company has been performing despite the tough trading conditions. In the first half Super Retail grew profits by 8.9% and looks well-positioned to deliver similar growth in the second half after it started it on a positive note. I believe this has put the company in a solid position to grow its dividend, which at present offers investors a trailing fully franked 6.2% yield.
