With interest rates at ultra-low levels and tipped to keep on falling, it is getting harder and harder for retirees to generate a sufficient income from traditional interest-bearing products.
The good news is that the Australian share market is here to the rescue with a large number of dividend shares offering very generous yields.
Three to consider buying this month are listed below:
Coles Group Ltd (ASX: COL)
One of my favourite buy and hold options on the Australian market is Coles. I believe the supermarket operator is well-placed for solid growth over the next decade thanks to its refreshed strategy. One of the key aims of this strategy is stripping out upwards of $1 billion in costs over the coming years. I believe this bodes well for its earnings and ultimately its dividends. I estimate that its shares currently provide a fully franked forward 3.5% dividend. But this could grow materially in the future.
Scentre Group (ASX: SCG)
Another top dividend share to consider is Scentre Group. It is the owner and operator of Westfield properties in the ANZ region. Thanks to robust demand for its tenancies and the increasing number of consumers that visit its centres, I believe it is capable of growing its distribution at a solid rate in the future. At present Scentre Group's units offer income investors a trailing 5.7% distribution yield.
Transurban Group (ASX: TCL)
And finally, I feel Transurban would be a great option for income investors this month. Transurban is a leading toll road operator that owns and operates a number of important roads in Australia and North America. Thanks to increasing traffic, periodic toll price increases, and developments and acquisitions, I expect Transurban to continue growing its distribution for a long time to come. Based on its guidance for FY 2020, its shares currently offer a forward 4.15% forward yield.
