If you're looking for a source of income in this low interest rate environment then the share market is a great place to start.
With an average dividend yield of 4%, there are a good number of options for income investors to choose from.
Three top dividend shares that I would buy are listed below:
National Australia Bank Ltd (ASX: NAB)
If recent events in the banking sector haven't put you off the banks, then I would suggest you consider buying NAB's shares. Since the start of October, the NAB share price has lost 16.5% of its value. I think this has been an overreaction which has left its shares trading at a very attractive level. Especially given the improving housing market and the bank's overweight exposure to SME lending. Another positive is that this pullback means that NAB's shares now offer a trailing fully franked 6.7% dividend yield.
Scentre Group (ASX: SCG)
Consumers continue to visit Scentre's Westfield properties in the ANZ market in increasingly large numbers. At the last count, its properties had welcomed 535 million customer visits through their doors over the last 12 months. This has led to strong demand for tenancies from the nation's most prominent retailers. So much so, 99.3% of its portfolio was leased at the end of September. I feel this puts Scentre in a good position to grow its distribution at a modest rate in the coming years. At present its units offer a trailing 5.9% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another ASX dividend share to consider buying is Sydney Airport. Over the last decade the airport operator has grown its dividend at a solid rate. The good news is that I believe it is well-placed to do the same over the next decade thanks to its position as the main gateway into and out of Australia. This should allow it to benefit strongly from increasing international tourism and a rebound in domestic tourism. At present Sydney Airport's shares offer a trailing 4.3% dividend yield.
