Luckily for income investors in this low interest rate environment, the Australian share market has a large number of quality dividend shares offering generous yields.
Three that I would buy next week are listed below, here's why I like them:
Coles Group Ltd (ASX: COL)
I think a recent pullback in the share price of this supermarket giant is a buying opportunity for income investors. During the demerger process, Coles advised that it intends to pay out between 80% and 90% of its earnings as dividends in the future. Based on this, I estimate that its shares are currently offering investors a fully franked forward 5.2% dividend. I think this makes it an attractive option for investors, especially given its defensive qualities, strong market position, and investment in automation.
National Storage REIT (ASX: NSR)
Another quality option for income investors could be this self-storage-focused real estate investment trust. It is one of the largest self-storage operators in Australia and New Zealand with a total of 146 facilities. Management aims to continue growing its network for the foreseeable future and has the balance sheet strength to do this. I expect the combination of organic and inorganic growth to allow National Storage to continue increasing its dividend for many years to come. This year it intends to pay a distribution of between 9.6 cents to 9.9 cents per unit. This equates to a yield of between 5.5% and 5.7%.
Westpac Banking Corp (ASX: WBC)
One of my favourite bank shares to buy right now is Westpac. Although its shares have rallied higher over the last three months thanks largely to the conclusion of the Royal Commission, they are still trading on lower than average multiples and offer a generous trailing fully franked 7.2% dividend. I think this could make it worth considering an investment next week if your portfolio doesn't already have meaningful exposure to the banks.
