Luckily for income investors in this low interest rate environment, the Australian share market is home to a large number of quality dividend shares trading at attractive prices.
Three top dividend shares that I would buy this week are listed below, here's why I like them:
Coles Group Ltd (ASX: COL)
This newly listed supermarket giant could be a great option for income investors. With the company planning to pay out between 80% and 90% of its earnings as dividends, I estimate that its shares currently provide investors with a fully franked forward 4.8% dividend. Pleasingly, I believe this dividend could grow at a decent rate over the next decade thanks to the company's investment in automation. This is expected to boost the supermarket's margins materially over the coming years.
Super Retail Group Ltd (ASX: SUL)
Although the retail sector has been going through a difficult 12 months after the housing market downturn hurt consumer sentiment, Super Retail has not let this hold it back. The company behind retail chains including Macpac, Rebel, and Super Cheap Auto has continued to achieve solid like for like sales and profit growth. And thanks to a strong start to the second half, I believe the company is well positioned to deliver a strong full year result and lift its dividend further. At present Super Retail's shares offer a trailing fully franked 5.9% dividend yield.
Westpac Banking Corp (ASX: WBC)
If you don't have meaningful exposure to the banking sector then I think Westpac could be a good option due to its attractive valuation and generous dividend yield. At present the shares of Australia's oldest bank provide a trailing fully franked 7% dividend yield. For this reason I feel it is one of the better options in the sector right now.
