Thankfully in this low interest rate environment, the Australian share market is home to a large number of dividend shares offering generous yields.
Three dividend shares that I think would be great options for income investors right now are listed below. Here's why I would buy them:
Coles Group Ltd (ASX: COL)
If you're looking for a long-term option then I think Coles could be worth considering. Especially given its refreshed strategy which aims to cut costs materially through automation and efficiencies. I expect this, its defensive qualities, and expansion opportunities to lead to solid earnings growth over the next decade. Based on its dividend policy which will see it pay out 80% to 90% of its earnings, I estimate that its shares currently provide a forward fully franked 4% dividend yield.
Mirvac Group (ASX: MGR)
One of the better results I've seen this earnings season came from this diversified property group on Thursday. Mirvac Group posted a 4% increase in operating profit to $631 million in FY 2019, which was at the top end of its guidance range. Pleasingly, more growth is expected next year, with management forecasting earnings growth in the region of 3% and 4%. The good news for income investors is that it expects to lift its distribution by 5% to 12.2 cents per security, which equates to a forward 3.6% distribution yield.
Westpac Banking Corp (ASX: WBC)
I think this banking giant would be a good option if you don't already have exposure to the sector. This is because recent moves by APRA to loosen lending rules and a potential rebound in the housing market could lead to solid mortgage loan growth and put Westpac in a position to deliver modest earnings and dividend growth over the coming years from FY 2020. At present its shares offer a trailing fully franked 6.7% dividend yield.
