Thankfully in this low interest rate environment, the Australian share market is home to a large number of shares paying generous dividends.
Four top dividend shares that I think are in the buy zone right now are listed below. Here's why I would buy them:
Accent Group Ltd (ASX: AX1)
Accent Group is the footwear-focused retailer behind popular retail chains including HYPE DC and Platypus. It was a strong performer in FY 2019 despite the tough trading conditions in the retail industry. And although trading conditions have still not improved, I believe it is capable of more growth this year. This is thanks to its strong brands, growth plans, and further margin expansion. Based on this, I estimate that its shares offer a forward fully franked 5% dividend yield.
BWP Trust (ASX: BWP)
Another good option for income investors could be BWP. It is a real estate investment trust which generates most of its income as the landlord of hardware giant Bunnings. Thanks to the quality of its tenants and periodic rental increases, I believe it is well-placed to grow its dividend for many years to come. At present its shares provide a trailing 3.5% distribution.
Lendlease Group (ASX: LLC)
Although Lendlease has had a tough 12 months, I believe it is over the worst of its issues now. This could make it a good time to consider a patient long-term investment. Especially given its development pipeline is now approaching $100 billion. I believe this has put the company in a position to grow its dividend at a solid rate over the next decade. Presently, I estimate that its shares offer a fully franked 4% FY 2020 dividend yield.
Stockland Corporation Ltd (ASX: SGP)
A final dividend share to consider buying is Stockland. It is a diversified Australian property company which owns, manages and develops retail centres, workplace and logistics assets, residential and retirement communities. This year the market is forecasting a small increase in its distribution to 27.8 cents per unit. This equates to a forward 6% distribution yield based on its last close price.
