The Australian share market is one of the most generous in the world when it comes to dividends, which certainly is a positive in this low interest rate environment.
But with so many top dividend shares to choose from it can be hard to decide which ones to buy.
To narrow things down I have picked out three dividend shares which I think are in the buy zone today:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don't already have exposure to the banking sector then I think it could be worth investing in ANZ's shares. Especially after the recent election result and APRA's plan to reduce the mortgage serviceability threshold. I believe the combination of this, its strong capital position, and cost cutting opportunities means ANZ is well-placed to deliver modest underlying earnings growth over the coming years. This should mean that its dividend is more than sustainable at the current level. Which is good news for income investors as it provides a very generous trailing fully franked 5.7% dividend yield.
National Storage REIT Stapled Securities (ASX: NSR)
National Storage is one of the ANZ region's largest self-storage providers, tailoring self-storage solutions to more than 35,000 residential and commercial customers through its network of 146 storage centres. I believe National Storage is well-positioned to grow its income and distribution at a solid rate over the next decade thanks to increasing demand and its growth through acquisitions strategy. At present its shares offer a forward yield of between 5.5% and 5.7%.
Super Retail Group Ltd (ASX: SUL)
Super Retail is the retail group behind brands including Supercheap Auto and Macpac. It has been a strong performer in FY 2019 despite the downturn in the housing market weighing on consumer confidence. So with the housing market tipped to improve in the near term following a favourable election result, I suspect Super Retail's performance could be given a boost from improving consumer sentiment and spending over the next 12 months. This could lead to solid earnings and dividend growth again in FY 2020. At present its shares offer a trailing fully franked 5.3% dividend yield.
