With rates at low levels and unlikely to improve any time soon, I think the Australian share market is a great place to generate income.
Three quality dividend shares that I think would be great options for income investors right now are listed below. Here's why I like them:
Aventus Retail Property Fund (ASX: AVN)
I'm a big fan of this fully integrated owner, manager, and developer of retail parks. At the last count, the company owned 20 retail parks and counted many of the country's biggest retailers as tenants. Approximately 98.5% of its properties were leased, with 16 of its 20 retail parks boasting 100% occupancy rates. While the retail sector certainly isn't firing on all cylinders right now, I believe the quality of its tenants and popularity of its format with consumers means Aventus is well-placed to continue growing its property income and distribution for the foreseeable future. Its units currently provide a trailing 7.25% distribution yield.
Coles Group Ltd (ASX: COL)
Another top income share that I would buy is this supermarket giant. I think the company's focus on automation and its appointment of Ocado for its online shopping business will help increase its margins materially over the next decade. If the company can combine this with some solid sales growth, this should lead to robust profit growth over the long term. And as Coles intends to pay out 80% to 90% of its earnings as dividends, this bodes well for income investors. At present I estimate that its shares provide a forward fully franked 4.5% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
A third and final dividend share to consider buying this week is Telstra. I think it could be a good option for investors due to the return of more rational competition in the telco industry, its improving mobile ARPU metric, cost reduction opportunities, and its leadership position in 5G. All in all, I believe this makes its dividend sustainable at 16 cents per share, making now an opportune time to consider an investment. Telstra's shares offer a fully franked 4.6% dividend yield based on today's close price.
