Dividend shares continue to be very popular with investors and this isn't surprising when you consider term deposits and savings accounts are offering rock bottom interest rates right now.
And with interest rates expected to drop to even lower levels in the near future, I think dividend shares are a great option for risk-tolerant investors who want to generate stronger returns over the medium term.
With that in mind, here are three shares that income-seeking investors might want to take a closer look at 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 would be a good option for income investors. Especially with the housing market showing signs of improvement. This could lead to solid mortgage loan growth and support its earnings and dividend. At present ANZ's shares offer a trailing fully franked 5.7% dividend yield.
Aventus Group (ASX: AVN)
Aventus is a leading owner and operator of large format retail parks across Australia. In FY 2019 it posted funds from operations (FFO) of $96 million or 18.4 cents per security, up from $89 million and 18.1 cents per security a year earlier. More of the same is expected in FY 2020, which I expect to lead to further distribution growth. Based on management's guidance and its current pay out ratio, I estimate that its shares offer a forward 6.4% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
I think this airport operator's shares would be a good option for income investors due to its generous dividend yield and status as a bond proxy. In respect to the latter, as bond yields continue to narrow, I expect demand for shares like Sydney Airport will continue to increase and support its share price. Sydney Airport's shares offer a 4.7% dividend yield at present.
