There's no escaping the fact that interest rates are extremely low and could go lower.
Luckily for those in search of a passive income, the Australian share market is home to a large number of shares offering generous dividend yields.
Three top dividend shares that I would buy this week are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
I think ANZ would be a great option for income investors. Especially with the Royal Commission out of the way, the housing market tipped to rebound in 2020, and tax cuts likely to increase consumer confidence. I believe there's a strong chance that this will to lead to solid mortgage loan system growth in the medium term, which should give ANZ's profits a big boost. In addition to this, I think it is the pick of the sector due to its current valuation, above-average dividend yield, cost-cutting opportunities, and share buybacks. ANZ's shares currently offer a trailing fully franked 5.85% dividend yield.
Scentre Group (ASX: SCG)
Scentre Group is the owner and operator of all the Westfield buildings in the Australia and New Zealand market. I'm a big fan of the company due to the quality of its portfolio. At present the company boasts 7 of the top 10 retail centres in Australia and 4 of the top 5 centres in New Zealand. Another big positive is its high occupancy rate. At its last update the company revealed that it had an occupancy rate of 99.3%. I expect this strong demand for its properties to support solid FFO and distribution growth over the medium term. This year the company intends to increase its distribution to 22.6 cents per security, which equates to a 5.8% yield.
Super Retail Group Ltd (ASX: SUL)
Another dividend share to consider buying is Super Retail Group. It is the company behind automotive retailer Supercheap Auto, sports store Rebel, and adventure retailers BCF and Macpac. I've been impressed at the way the company has achieved solid profit growth in FY 2019 despite the tough retail conditions. In light of this, FY 2020 could be an even stronger year if a housing market rebound and tax cuts lead to a big improvement in consumer confidence and spending. At present its shares offer a trailing fully franked 5.2% dividend yield.
