Given that interest rates are at record low levels and showing little signs of improving in the near term, I think income investors ought to consider the large number of Australian shares currently offering generous dividend yields.
Three that I think could be great options today are listed below. Here's why I like them:
Australia and New Zealand Banking Group (ASX: ANZ)
If you don't have exposure to the banking sector, then I think ANZ would be a good option. Although conditions remain tough for the banks, I'm optimistic that things will ease over the next 12 months. Especially given APRA's decision to loosen lending rules and the housing market showing signs that a rebound might be on the cards in the near term. In addition to this, I think ANZ's attractive valuation, generous dividend yield, and potential buybacks make it worth considering. At present the bank's shares offer a trailing fully franked 5.9% dividend yield.
Aventus Group (ASX: AVN)
Aventus is an owner and operator of retail parks across Australia. As retail parks continue to be popular with consumers, demand for its properties from many of the largest retailers in the country has remained strong and led to a sky high occupancy rate in FY 2019. I believe the combination of this and periodic rental increases has left Aventus well-placed to grow its distribution at a solid rate over the coming years. At present its units offer a 6.8% distribution yield. This is higher than normal due to concerns over a large number of leases that are up for renewal in the next couple of years. However, with retail conditions improving, I believe the risk of a mass exodus of tenants is being overplayed.
National Storage REIT (ASX: NSR)
National Storage is one of the largest self-storage providers in the ANZ market with a total of 164 centres. From these centres the company provides tailored storage solutions to over 60,000 residential and commercial customers across the region. This year the company has been on an acquisition spree following a $190 million equity raising. Combined with its existing portfolio and development projects, I expect these acquisitions to support solid income and distribution growth over the coming years. At present its shares offer a forward yield of around 6%.
