With interest rates at ultra-low levels and potentially going lower in the coming months, I continue to believe that the Australian share market is a great place to generate income.
Three top dividend shares that I think would be great options for income investors today are as follows:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don't already have exposure to the banking sector, then I think ANZ's shares could be a great way to do it. Although its recent half year result wasn't the strongest you'll see, I saw enough in it to remain positive on the bank's medium term outlook and believe its current dividend is sustainable. Especially given its cost cutting opportunities and strong capital position. At present ANZ's shares offer investors a trailing fully franked 5.8% dividend yield.
Rural Funds Group (ASX: RFF)
Rural Funds Group is an agriculture-focused real estate property trust which I believe would be a great pick for income investors. It owns a collection of high-quality agriculture assets across a range of industries including cattle, almonds, and wine production. Due to the quality of its portfolio and long term leases which include rental indexation, I believe the trust is well-positioned to deliver solid distribution growth over the next decade. Its units currently offer investors a 4.8% forward distribution yield.
Transurban Group (ASX: TCL)
Another top dividend share to consider buying this week is this toll road operator. Due to a combination of steadily growing traffic numbers and toll prices, the company has been able to consistently increase its distribution at a solid rate over the last decade. Thanks to the quality of its portfolio and the recent Westconnex acquisition, I believe Transurban is well-positioned to continue growing its distribution at this rate for a long time to come. Its units currently provided investors with a trailing distribution yield of 4.2%.
