Dividend shares continue to be popular with investors and this isn't at all surprising when you consider term deposits and savings accounts offer only paltry interest rates right now.
And with interest rates expected to remain at record low levels for some time to come, I think dividend shares are still a great option for risk-tolerant investors that want to generate stronger returns over the medium term.
With that in mind, here are three shares that income-seeking investors might want to consider buying this month:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don't already have exposure to the banking sector then I think ANZ could be well worth considering. This is because the outlook for the banking sector has improved greatly in recent weeks following favourable moves by APRA in respect to lending rules. In addition to this, I believe ANZ is well-placed to grow its underlying earnings over the coming years thanks to buybacks, cost-cutting, and a potential housing market rebound. At present the bank's shares offer a generous trailing fully franked 5.7% dividend yield.
Coles Group Ltd (ASX: COL)
One of my favourite dividend shares on the local market is this supermarket giant. Whilst its shares have risen strongly in recent weeks thanks to a solid quarterly update and a positive reaction to its cost cutting plans, I don't believe it is too late to consider a long term investment. Especially given its defensive qualities, positive long-term outlook, and favourable dividend policy. I estimate that Coles' shares currently provide a forward fully franked 4% dividend yield.
Scentre Group (ASX: SCG)
Scentre is the owner of the Westfield properties in the ANZ region. I believe it is well-placed to deliver solid FFO and distribution growth over the next few years thanks to the quality of its portfolio. For example, over 65% of the ANZ population live within a 30 minute drive of a Westfield centre. Thanks partly to this, its centres are currently generating $24.1 billion of annual retail in-store sales across the region. This means that 7.5% of all retail sales occur through the Westfield platform. Given these impressive statistics, it is no surprise to learn that the company currently boasts an occupancy rate of 99.3%. I believe this has positioned it well to deliver on its plan to pay a 22.6 cents per security distribution this year, which currently equates to a 5.6% yield.
