Thankfully in this low interest rate environment, the Australian share market is home to a large number of shares that offer generous dividend yields.
Three which I think would be great alternatives to term deposits and bond yields are listed below:
National Australia Bank Ltd (ASX: NAB)
I think NAB would be a great option for income investors for a number of reasons. This includes its attractive valuation, its generous dividend yield, and the improving outlook of the banking sector. In respect to the latter, the housing market has been improving in recent weeks and has been tipped to rebound in FY 2020. If this occurs, it could lead to solid mortgage loan growth and support its earnings and dividends. I estimate that NAB's shares offer a forward fully franked 6.1% dividend yield.
National Storage REIT (ASX: NSR)
Another top dividend option to consider is this leading self-storage operator. It has successfully grown its network, income, and distribution at strong rate over the last few years thanks to development projects and its growth through acquisition strategy in a highly fragmented market. The good news is that I still see plenty of opportunities for this strategy to continue and drive further growth over the coming years. I estimate that its shares provide a forward 5.5% distribution yield.
Transurban Group (ASX: TCL)
A final dividend option to consider buying this week is this toll road operator. I'm a big fan of the company due to the way its business model has allowed it to generate consistent distribution growth over the last decade. I believe that this will continue to be the case over the next decade thanks to the growing number of vehicles on its roads, recent acquisitions, and periodic toll increases. At present Transurban's shares offer a trailing distribution yield of 3.9%.
