Luckily for savers in this low interest rate environment, the Australian share market is home to a large number of quality dividend shares offering generous yields.
Three dividend shares that I would buy this week are listed below. Here's why I like them:
Super Retail Group Ltd (ASX: SUL)
I think that this retail group would be a great option for investors in search of dividends. Super Retail has continued to grow its bottom line at a solid rate in FY 2019 despite the tough trading conditions being faced by retailers. In the first half the company posted an 8.9% increase in normalised net profit after tax to $81.6 million thanks partly to the strong performance of its outdoor segment. And with the company starting the second half strongly, I expect it to deliver a solid full year result. This is likely to put it in a position to increase its dividend, which currently provides investors with a trailing fully franked 5.9% yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
One of my favourite dividend shares on the ASX is the operator of Sydney Airport. I believe it is well-placed to grow its profits at a solid rate over the next decade thanks to increasing global tourism, its position as the main gateway into Australia, and its near-monopoly status. Overall, I believe this will allow the Sydney Airport board to continue increasing its dividend for many years to come. At present its shares offer a trailing 4.9% dividend yield.
Westpac Banking Corp (ASX: WBC)
Although it may be best to wait for Westpac's half year results next week before investing, if there are no nasty surprises in them then I think it would be a great option for income investors. The banking sector may be going through a tough time at present due to the Royal Commission and housing market downturn, but I remain confident that Westpac can still grow its underlying earnings and dividend at a modest rate over the coming years. At present its shares offer an attractive trailing fully franked 6.8% dividend.
